Question 3 ABC issued a prospectus for 150,000 $6 shares on 1 January 2017. The prospectus required payment of $4 on application and $3 in one years time. The company received applications for a total of 175,000 shares these applications were received throughout the month of January. On 31 January 2017 ABC issued 150,000 shares. Required:

Prepare the journal entries to account for the issue of shares assuming the excess money was offset against the call due in one years time.