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Question 3 Kaguya Ltd (15 marks) On 5 August 2021, Kaguya Ltd was registered and offered 1 100 000 ordinary shares to the public at

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Question 3 Kaguya Ltd (15 marks) On 5 August 2021, Kaguya Ltd was registered and offered 1 100 000 ordinary shares to the public at an issue price of $7. payable as follows: $3 on application (due 3 December 2021) $2 on allotment (due 22 December 2021) $1.50 on first call (due 10 January 2022) $0.50 on final call (due 12 February 2022) The issue was underwritten at a commission of $11 450. By 3 December 2021, applications had been received for 1 350 000 ordinary shares of which applicants for 500 000 shares forwarded $7 per share, the remainder paying only the application money of $3 per share. At a directors' meeting on 10 December 2021, it was decided to allot shares in full to applicants who had paid the full amount and proportionally to all remaining applicants. According to the company's constitution, all surplus money from application shall be transferred to Allotment and Call accounts. The underwriting commission was paid on 11 December 2021. Other share issue costs of $8 123 were also paid on this date. All outstanding allotment money was received by the due date. The first call was made on 3 January 2022 with money due by 10 January 2022. All outstanding first call money was received on the due date except for the holders of 120 000 shares who did not meet the first call. The Company made the final call on 3 February 2022 with final call money due on 12 February 2022. For the final call, all outstanding final call money was received on the due date except for 30 000 shares. On 19 February 2022, as provided for in the constitution, the directors decided to forfeit these 120 000 shares. They were reissued on 25 February 2021, as paid to $7 for $6.10 cash per share. Cost of forfeiture was $4 130. The balance of the Forfeited Shares account was returned to the former shareholders on 28 February 2022 Required: Prepare the journal entries to record the transactions of Kaguya Ltd up to and including that which took place on 28 February 2022. Narrations are not required. (Question 3 = 15 marks)

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