York Ltd. was registered on 1 July 2020. The next day, the directors issued a disclosure document inviting applicants for 700,000 ordinary shares with an issue price of $1. The shares were payable 20on application and 40 on allotment. By the end of July, the company had received exactly 700,000 applications, together with the correct application monies. The directors allotted these shares on 1 August. The correct allotment monies were received by the end of September. On 1 October 2020, the directors made a call of 25 per share. Call monies were due and payable by 31 October, and were received by then except in respect of one parcel of 10,000 shares.

Required:

1. Prepare journal entries with explanations to record the transactions above. (6 marks)
2. Prepare an extract from the balance sheet as at 31 October 2020, showing owners' equity (1 marks)