Task 1: Accounting for share capital by Moelis(10 marks)

Moelis Australia was incorporated on 1 July 2009. On 1 July Moelis Australia board decided to raise capital by public offering of its shares.The following transactions and events occurred during the year ended 30 June 2018:

1 Aug 2017 Winter Ltd makes an offer to the public for investors to subscribe for 10,000,000 shares, at an issue price of $2.00 per share, with $1.50 payable on application, $0.30 being payable within one month of allotment, and $0.20 payable on a call to be made at a later date.The issue is underwritten at a commission of $4,000.

31 Aug 2017 Applications close, with applications received for 11,000,000 shares.

2 Sep 2017 Shares are allotted in proportion to the number of shares for which applications had been made.The surplus application money was offset against the amount payable on allotment.

12 Sep 2017 The underwriter's commission is paid.

2 Oct 2017 All allotment money is received.

31 Nov 2017The call is made, with money due by 31 December 2017.

31 Dec 2017 All call money is received except for holders of 20,000 shares who fail to meet the call.

18 Jan 2018 The shares on which call money was not received are forfeited and sold as fully paid.An amount of $1.50 is received for each share sold.Costs of the forfeiture and reissue amount to $1,000, and are paid.The constitution does not provide for refund of any balance in the forfeited shares account after reissue to former shareholders.

Required:

Prepare the journal entries to record the transactions of Moelis Australia up to and including that which took place on 18 January 2018.Show all relevant dates, narrations and workings.Use computerised accounting system (MS Excel) using the templet provided in the answers section which is in accordance with company policy and procedure. (Submit hard copy as well as soft copy of your work during assessment submission)