1. On 1 October 2020, Salma Al Ibri Ltd issued a prospectus for applications for 200,000 ordinary shares to the public at an issue price of OMR7, payable OMR2.50 on application, OMR4.50 on allotment as determined by the directors. By 1 December applications had been received for 250,000 ordinary shares with OMR2.50 attached. At a directors meeting on 5 December, it was decided to reject applications for 50,000 shares and issue shares to the remaining applicants. Share issue costs of OMR4,000 were paid on 5 December. All outstanding allotment money was received by the 1 January 2021.

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Prepare the journal entries to record the transactions of Acacia Ltd as outlined above. (Show all workings).