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Required: Prepare the journal entries to record these transactions of Princess Ltd. (Show all workings.) Answer the question in the space provided below. On 1

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Required: Prepare the journal entries to record these transactions of Princess Ltd. (Show all workings.) Answer the question in the space provided below. On 1 August 2018, Princess Ltd issued a prospectus inviting applications for 400 000 ordinary shares to the public at an issue price of $24. payable as follows: $8 on application (due by closing date of 1 November) $10 on allotment (due 1 December) $6 on future calls (date to be determined by the directors) By 1 November, applications had been received for 430 000 ordinary shares of which applicants for 50 000 shares forwarded the full $24 per share, applicants for 150 000 shares forwarded $18 per share and the remainder forwarded only the application money. At a directors' meeting on 7 November, it was decided to allot shares in full to applicants who had paid the either $24 or $18 on application to reject applications for 10 000 shares and to proportionally allocate shares to all remaining applicants. According to the company's constitution, all surplus money from application can be transferred to Allotment account Share issue costs of $11 000 were also paid on 7 November. All outstanding allotment money was received by the due date. The call was made on 1 February 2019 with money due by 1 March. All money was received by the due date On 13 February 2019, the directors issued a prospectus inviting applications for 5 000 5% unsecured debentures of $100 each, payable in full on application. By 22 February. the company received applications for 4 600 of the debentures and they were subsequently allotted On 30 June 2019, the company decided to redeem the notes in cash on the open market ANSWER: Workings Allocation of money received on application No. of Shares applied for No. of Shares Allotted Money Received Application $ Allotment $ Call $ I Journal entries: Date Details Dr $ CR$

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