QUESTION 3 Total 10 marks On 5 March 2014, Hexagon Ltd, a public company, issued a prospectus inviting applications for 200,000 shares with the following terms: $1 on application, 50 cents on allotment, 25 cents on lst call, and 25 cents on 2nd call. The lst call was made on 7 June 2014, and the 2nd call was made on 7 September 2014. By 31 March, applications were received for 250,000 shares. On 7 April, the directors allotted 200,000 shares to the applicants on a pro-rata basis. The surplus application money was offset against the amount payable on allotment. The balance of the allotment money was received by 15 April. Share issue costs were $25,000, and these were paid on 30 April. The two calls were made on the dates stated in the prospectus. Money from the lst Call and the 2nd Call were received on 7 July 2014 and 7 October 2014 respectively except for the holders of 15,000 shares who did not pay either call, and a holder of another 5,000 shares who did not pay the 2nd call. Required: Prepare journal entries (including narrations) to record the above transactions