Pronting Enterprises Ltd was incorporated several decades ago. As at the 30^th June 20X1 the company had 10,560,000 Ordinary issued share fully paid to $4.00. There were no Calls in Arrears or Calls in Advance.

On the 1^st August 20X1 the company released a Prospectus seeking investment by the public through the issue of a further 1,500,000 Ordinary shares at $4.00 each. Details of payments are as follows:

(1)$1.00 payable on Application which closes 30^th September 20X1

(2)$1.50 payable on Allotment

(3)The remainder payable on Call/s at the companys discretion.

As at 30^th September 20X1 the following Applications had been received:

(1)400,000 applications who paid $4.00 per share

(2)500,000 applications who paid the application and the allotment amounts

(3)900,000 applications who paid the application amount only.

On 1^st October 20X1 the following decisions were made:

(1)Applicants who paid for the shares in full were allotted all of the shares they applied for

(2)Applicants who paid the application and allotment monies received 4 shares for every 5 applied for. Excess monies were retained for future calls.

(3)Of the 900,000 applications who paid the Application amount only, 100,000 had their applications rejected and their money returned. The remaining applicants were issued 7 shares for every 8 applied for and excess money was allocated to the allotment.

All shares were allotted as detailed above on 1^st October 20X1 and allotment monies were required to be paid on 31^st October 20X1.

All outstanding allotment monies were received as required.

On the 1^st January 20X2 Pronting Enterprises Ltd made a call of $1.00 per share payable on the 28^th February 20X2. Previous amounts held were allocated in satisfaction of the call.

As at 28^th February 20X2 all call monies were received except for 150,000 shares.

REQUIRED

1.Prepare general journal entries with narrations for Pronting Enterprises Ltd to record all transactions from the events described.

2.Record the general journal entries from i) above in general ledger T accounts and balance the accounts as at 28^th Februarys 20X2. Assume that the Cash at Bank account was a dedicated account for the share issue and, therefore, had no opening balance or had any other transactions other than those that arose out of the share issue transaction above.