Question 3 You are the junior accountant for Forlorn Ltd. ("Forlorn") and are currently preparing their financial statements for the year ended 31 December 2019. You have been asked to record the journal entries for a number of different issues, all of which are detailed below. Issue 1: During 2019, Forlorn issued 10,000 ordinary shares for cash at their market value. The nominal value of these shares was 0.50. The market value at date of issue was 0.75. The market value of the shares at 31 December 2019 was 1. Issue 2: An extract from Forlorn's trial balance as at 31 December 2019 is as follows: Trade Receivables & Payables Bad Debts 10,000 1.000 8,000 Furthermore, Forlorn's Trade Receivables balance as at 31 December 2018 was 13,000. Issue 3: At 31 December 2019, Forlorn has recognised inventory at its cost of 3.000. However, it has estimated that this inventory can only be sold for 2,000. Forlorn expects to incur 200 of selling costs in relation to this transaction. Requirements: a) For Issue 1, provide the appropriate journal entries to account for the share issue. (6 Marks) b) For Issue 2, outline the impact of the information provided on the Statement of Cash flows for the year ended 31 December 2019. (6 Marks) c) For Issue 3, provide the appropriate journal entries to account for Forlorn's inventory balance based on the information provided. (6 Marks) Total: 18 Marks