Problem
Springfield Ltd was registered on 1 July 2022. On 4 August a prospectus was issued inviting public subscriptions for an issue of 200,000 12% preference shares payable $2 in full on application, and 600,000 ordinary shares at a price of $1.60 per share, payable $1 on application, 20c on allotment and the balance as and when required.
Applications were to be made in multiples of 100 shares with a minimum of 200 preference shares or 500 ordinary shares. The directors reserved the right to allot the shares applied for in full or such lesser number as resolved and to apply excess money towards amounts due on allotment. All other money was to be refunded to applicants.
Applications were received for 240,000 preference shares and 800,000 ordinary shares by 16 August when the directors closed the issue.
On 19 August, the directors allotted a total of 200,000 preference shares after rejecting 40,000 applications. On the same day, the directors also rejected the applications for 120,000 ordinary shares and allotted the balance on a pro rata basis.
On 24 August, refunds were made to the respective applicants in accordance with the directors' resolutions. Share issue costs of $1,500 were also paid on this date. Outstanding allotment money was received by 30 September.
On 8 November the directors resolved that a call of 30c per share was to be made on the 600,000 partly paid ordinary shares. The call is due and payable by 1 December. Call money was received as follows.
a) December on 520,000 shares
b) 15 December on 40,000 shares.
Task
i. Prepare entries in general journal form to record the events in the accounts of Springfield Ltd.
ii. Prepare necessary T Accounts in the book of Springfield Ltd.
iii. Prepare the balance sheet of Springfield Ltd.