Prepare journal entries to record the transactions.

Issue by instalments, oversubscription, forfeiture and reissue On 1 April 2016, Magnolia Ltd was incorporated and a prospectus was issued inviting appli- cations for 100000 shares, at an issue price of $10, payable $5 on application, $2.50 on allotment and $1.25 on each of two calls to be made at intervals of 4 months after the date of allotment By 30 April, applications were received for 120 000 shares. On 3 May, the directors allotted 100 000 ordinary shares to the applicants in proportion to the number of shares for which appli cations had been made. The surplus application money was offset against the amount payable on allotment. The balance of the allotment money was received by 10 May. Legal costs of forming the company were $1300 and were paid on 11 May. Share issue costs of $800 were also paid on the same date. The two calls were made on the dates stated in the prospectus, but the holders of 10 000 shares did not pay either call. In addition, a holder of another 5000 shares did not pay the second call On 10 March 2017, provided by the company's constitution, the directors forfeited the unpaid as 15 000 shares on which calls were On 25 March 2017, the forfeited shares were reissued as $9 per share. Costs of forfeiture and reissue amounted to $250. The constitution does not provide for refund of any balance in the forfeited shares account after reissue to former shareholders fully paid for a consideration of