Question 2 ABC issued a prospectus for the issue of 150,000 $7 shares on 1 January 2017. The prospectus specified that $3.50 was payable on application, a further $3.50 was payable at call. On 31 January 2017 ABC issued 150,000 shares. On 31 May 2017, the company made the call for the outstanding balance of $3.50 per share. The call was payable by 30 June 2017. At 30 June 2017, the call on 15,000 shares remained unpaid.

Required: Prepare the journal entries to account for the issue of shares for ABC.