On 30 April 2020, Tamworth Ltd issued 40,000 shares for $6 each, payable $2 on application, $2 on allotment and the remainder due by two equal calls on 30 June and 31 August 2020. Share issue costs of $3,500 were paid on 31 May 2020.

Required Prepare journal entries (in general journal format) to record the share issue up to collection of allotment money assuming:

1. The shares were fully subscribed (15 Marks) 2. The shares were undersubscribed by 6,000 shares. (15 Marks)