Rights issues and private placements The equity of Ash Ltd on 30 June 2017 was: Share capital (issued at $4, fully paid) $1200000 Asset revaluation surplus 700000 Retained earnings 400000 The following transactions occurred during the year ended 30 June 2018. 1. On 1 August 2017, a 1-for-4 rights offer was made to existing shareholders. The issue price was $4 per share payable in full on allotment, and rights were transferable. Shares issued under the offer were to rank equally with existing shares as from 1 August 2017. The issue At a directors' meeting on 7 November, it was decided to allot shares in full to applicants who had paid either the $12 or $9 on application, to reject applications for 20 000 shares and to pro- portionally allocate shares to all remaining applicants. According to the company's constitution, all surplus money from application can be transferred to Allotment and/or Call accounts. Share issue costs of S11 000 were also paid on 7 November. All outstanding allotment money was received by the due date. A first call for $1.60 was made on 1 February 2019 with money due by 1 March. All money was received by the due date. A second and final call for $1.40 was made on 1 June with money due by 18 June. All money was received by the due date. Required Prepare the journal entries to record these transactions of Prunus Ltd. (Show all workings.) Rights issues and private placements The equity of Ash Ltd on 30 June 2017 was: Share capital (issued at $4, fully paid) $1200000 Asset revaluation surplus 700000 Retained earnings 400000 The following transactions occurred during the year ended 30 June 2018. 1. On 1 August 2017, a 1-for-4 rights offer was made to existing shareholders. The issue price was $4 per share payable in full on allotment, and rights were transferable. Shares issued under the offer were to rank equally with existing shares as from 1 August 2017. The issue At a directors' meeting on 7 November, it was decided to allot shares in full to applicants who had paid either the $12 or $9 on application, to reject applications for 20 000 shares and to pro- portionally allocate shares to all remaining applicants. According to the company's constitution, all surplus money from application can be transferred to Allotment and/or Call accounts. Share issue costs of S11 000 were also paid on 7 November. All outstanding allotment money was received by the due date. A first call for $1.60 was made on 1 February 2019 with money due by 1 March. All money was received by the due date. A second and final call for $1.40 was made on 1 June with money due by 18 June. All money was received by the due date. Required Prepare the journal entries to record these transactions of Prunus Ltd. (Show all workings.)