The equity balances for Wonderland Ltd at the 1 July 2017 comprised the following:

Share capital (All ordinary shares) $3 380 000

Retained earnings $8 200 500

Total $11 580 500

On 1 October 2017, Wonderland Ltd issued a prospectus for applications for 200 000 ordinary

shares to the public at an issue price of $7, payable $2.50 on application, $1.50 on allotment

and the remaining $3 in future calls as determined by the directors when they think it is right

to do so.

By 1 December 2017, applications had been received for 240 000 ordinary shares with $2.50

attached.

At a directors' meeting on 5 December 2017, it was decided to reject applications for 40 000

shares and issue shares to the remaining applicants.

Share issue costs of $4000 were paid on 5 December. All outstanding allotment money was

received by the 1 January 2018.

The first call for $2 was made on 1 February 2018 with all the money received by 20 February

2018. The second call for $1 was made on 20 June 2018 with all the money received by 30

June 2018.

Requirements:

a) Prepare the journal entries to record the transactions of Wonderland Ltd as outlined

above. Narrations are required for all the journal entries.

b) Calculate the amount of share capital in the statement of financial position of

Wonderland Ltd as at 30 June 2018.