First Point Ltd commences operations by issuing 1 million shares at a price of $1.40 per share,

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Question:

First Point Ltd commences operations by issuing 1 million shares at a price of $1.40 per share, payable in full on application. Application monies are received on 31 July 2019 and the shares are allotted on 4 August 2019. The share issue is made as a result of an offer being made to the public.

REQUIRED

Provide the journal entries to account for the receipt of the application monies and the subsequent allotment of the shares