QUESTION 2 25 marks Lincoln Ltd was registered as a public company on January 2, 2020. Directors immediately issued a prospectus inviting the public to subscribe for 2,000,000 million shares at $2 each, payable $1 on application, S0.50 on allotment and the remainder in two calls of $0.25 each. The closing date for applications was April 30 and the directors allotted shares on May 1. Applications were received for 2,500,000 shares and allotments were made on a pro-rata basis to applicants as follows: # Shares applied for Shares Allotted Amount paid per share Total Amount Received S $ 1,200.000 1,000,000 1.00 1,200,000 750,000 500,000 I 400,000 1.50 800,000 600,000 2.00 1,600,000 2,500,000 2,000,000 3,550,000 Directors have exercised their right to retain excess application money and apply it against allotment and future calls when due. Refunds were made as necessary on May 1. Other relevant dates are: May 31 Outstanding allotment money received in full. . July 1 . . Other relevant dates are: May 31 Outstanding allotment money received in full. Call #1 is made July 31 Outstanding call money received in full Sept 1 Call #2 is made Sept 30 All call money received except from holders of 16,500 shares Required; 1. Prepare general journal entries to record the share issue. . (You may wish to use a worksheet table to summarise application money received) II. Prepare all ledger accounts ('T' account format) necessary to record the above transactions I # Shares applied for Shares Allotted Call #2 Refunds .25c Total Amount Received $ Applicatio Allotmen Call #1 n t .25c $1 .50c $ $ $ $ $ I. GENERAL JOURNAL LINCOLN LTD B D 1. 1 GENERAL JOURNAL LINCOLN LTD 2 2 3 4 5 6 7 8 9 10 c B D 11 12 13 14 15 16 17 18 19 II. Trust Bank I Bank Share Capital Share Capital Application Allotment Calls in Advance Call #1 Call #2