Upon some further questioning on your part, he provided what he knew in bits and pieces.

• The 560,000 outstanding common shares on January 1 had been reported at an amount of $7,959,840.
• The additional 84,000 common shares had been issued on February 1 for cash at $11.50 each.
• 12,000 common shares had been acquired on April 1. "Why did we buy the shares if all we did was to cancel them right after acquiring them on the same day? We lost $9,300 on that deal," lamented Mr. Jell.
• On March 25, the company had issued subscriptions for some additional common shares. It received $172,000 upon application at $2.00 per subscription . Thereafter, the subscribers were required to pay $4.00 on April 15 and the balance, being the final instalment, on April 30. The issue was fully subscribed.
• On April 15, subscribers for 8,000 subscribers failed to pay the required instalment. The company received the cash from all of the other subscribers. The defaulting subscribers forfeited the first instalment paid.
• On April 30, the company received $468,000 from the remaining subscribers and on May 1, it issued shares to all subscribers in good standing.

Now you get to work on the second list of questions posed by Mr. Jell. These are listed on the following page.

Required: Prepare journal entries, in proper format, to record all transactions listed below:

i] the issue of shares on February 1.

ii] the acquisition and cancellation of the treasury shares on March 1.

iii] the entries required on March 25. iv] the instalment (and default) on April 15.

v] the instalment on April 30.

vi] the issue of the shares on May 1.