Tara Ltd is a listed company. They currently have 2,000,000 shares outstanding on the Australian Stock Exchange.

They have decided to raise an additional $20,000,000 through an institutional placement.

Initially:

Price per share - $2, with half paid on application, balance to be paid when called sometime in the future.

One month later:

Payment of the balance announced by the company. 2% of the shareholders forfeited their shares.

Required:

1) Record the above transactions (ignore dates)

2) State the dollar value that will be refunded to shareholders who forfeited their shares, give a brief reason as to why you have stated that amount