QUESTION 2 20 MARKS Perry Electronics Ltd manufactures highly sophisticated electronics circuits to the defence industry It was incorporated over 10 years ago. At the Board meeting held on 15m July 20X5 it was decided to raise more capital via a public offering of shares. As a result a prospectus was issued seeking 5,000 shares. The offer was oversubscribed with applications for 8,750 shares received. All applications paid only the application amount and the required 5,000 shares were issued. Shares were issued in proportion to their applications. A First Call was made on the shares on 1t February 20x6. The general ledger T accounts below provide the details of the issue and the call. (NB The number of shares has been kept small so that they are easily managed by students Clearly though this is a public company and any share issue to the public would deal in numbers much larger.) Share Capital 7S Bal b/d 1/10/5 Applications 750,000 12,500 5,000 9,000 Allotment 1/2X6 First Call Calls in Advance /2X6 First Call 4375 1/10xs Applications First Call 9,000 1/2x6 Calls in Advance 4,375 1/2/x6 Share Capital 4,375 4,440 31/3X6 Cash at Bank On 1* May 20x6 the decision was made to forfeit the shares of the shareholders who did not pay the First Call. Those shares were then offered to another single shareholder at price of $5.15/share but paid to the amount of the other shares. This single shareholder accepted the offer and paid the amount on 15h June 20x6 and the costs associated with the forfeiture and re-issue were $450. The forfeited shareholders received refunds of the remaining amounts on 30m June 20x6. You are provided with general journal entries below that relate the share forfeiture, subsequent share reissue and payment to forfeited shareholders. However, the dates, dollar amounts and narrations have been deleted