QUESTION 1 On May 31 2020, Nixon Ltd issued a prospectus for 180 000 ordinary shares at $2.50, payable $1.50 on Application, 50 cents on Allotment, 25 cents on Call #1 and the remaining on Call #2. Applications for 240 000 shares were received by June 15 2020, of which 20 000 shares were paid in full on application Directors allotted the shares on June 25 2020, and decided to: Allot shares to the applicants who paid in full, Reject applications for 20 000 shares and refund the application money, Allot 4 shares for every 5 shares applied to the remaining applicants. The surplus money from the applications was to be transferred to allotment and/or call accounts. The share issue costs were $9 600 and were paid on 28 June. All allotment money was received by 15 July 2020. Directors made the first call on 18 September 2020 All Call #1 monies were received by 10 October 2020, except from the holders of 2 000 o o shares The second call was made on 8 November 2020 All Call #2 monies were received by 18 November 2020, except from Wie holder of another i 000 shares who did not pay the second call. Required; o Prepare the general journal entries to account for the share issue up to & including Call #2. Students may choose to use an allocation table provided below, # Shares applied for # Shares allotted Allocation of money received on Application Money Application Allotment Calls in received $1.50 500 Advance 50c Refunds $1.50 GJ1 GENERAL JOURNAL NIXON LTD Particulars Follo DR CR Date June 15 Money rec'd on applic June 25 Receivable on applic. & allotment Distribution of excess monies . Baltr. From Trust Bank June 28 . Share issue costs 15/7 Bal of allot. Monies received 18/9 TH call money in advance Receivable on 1st call 10/10 . Money rec'd on 158 000 shares 8/11 . Trf call money in advance Receivable on 2nd call 18/11 . Money rec'd on 159 000 shares