Question 1.

Fraser Ltd was formed on 1 August. On 1 September the company issued a prospectus inviting applications for the issue of 400,000 shares with an issue price of $1 to the public on the following terms:

• Application .30 cents payable
• Allotment .70 cents payable.
• Prospectus allowed for any excess moneys on application to be applied towards any allotment moneys due. The issue was oversubscribed receiving 600,000 shares on closing date 30 September. On 15 October the allotment of shares was made as follows:

Shares Applied for	Amount Received	Shares Allocated
100,000	100,000	100,000
400,000	120,000	300,000
100,000	30,000	NIL
600,000	250,000	400,000

The balance of the allotment money due was received 31 October.

REQUIRED:

1. Complete the following worksheet for the over subscription.

Shares Applied for	Amount Received	Shares Allocated	application	allotment	Refund
100,000	100,000	100,000
400,000	120,000	300,000
100,000	30,000	NIL
600,000	250,000	400,000

1. Prepare general journal entries to record the share issue.