1. Prepare journal entries for each of the following transactions:

   1. a XYZ Ltd issues 200 000 shares to an institutional investor on 10 October 2019 for $2.90 a share.

   2. b In September 2019, ABC Ltd issued a prospectus offering 500 000 shares at $3.00 per share, all payable

      at the time of application. On 15 October, $1 800 000 had been received, and the directors allotted the 500 000 shares to subscribers in proportion to their applications and refunded the balance of the application monies.

   3. c Assume that in part (b) $2.00 was payable on application, $0.50 on allotment and $0.50 on call, and there was no oversubscription

Please show all of your working out and explain in full your work and how you got to the answer.

1. Prepare the shareholders equity section of the balance sheet for ABC Ltd after the transactions in question 1, part (c) have occurred, assuming that retained profits were $100 000 and that there were no other reserves.