Problem 2

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

In September 2014, ABC Ltd issued a prospectus offering 500 000 shares at $3.00 per share with $2 payable at the time of application, $0.50 payable on allotment and $0.50 on call. On 15 October, the directors allotted 500 000 shares to subscribers. The call was receivable on 15 November 2014 and all amounts due were collected. No narrations required.