A trial balance taken from Galston Ltd’s accounting records at 30 September 2019 showed the following account balances.

At a meeting of directors on 1 October, it was decided to issue additional shares to fund future operations. Accordingly a prospectus was issued on 10 October offering 400 000 ordinary shares at $1 each to the public, payable 50c per share on application, 25c per share on allotment and the remainder in one call when required.
By 30 November, applications were received from the public for 24 000 shares in excess of the number available, and the application money paid in on 24 000 shares was refunded to unsuccessful applicants. The rest of the shares were allotted to the successful applicants, including one who had paid in full on application for 4000 shares. The share issue had been underwritten for a fee of $8000.

By 15 December, all cash due on allotment had been received, and the underwriting fee was paid on this date.

On 31 January 2020, an interim dividend of 6c per share was paid out of retained earnings on all fully paid equivalent shares.

On 28 February, the remaining call on the shares was made, and all cash was received on the call by 31 March, except for the holder of 7000 shares.

Required

(a) Prepare journal entries in general journal form to record the above transactions.

(b) Prepare the following accounts in T‐account format to show the effect of the above transactions: Share Capital, Application, Allotment, Call.

(c) Prepare a statement of changes in equity for the 6 months ended 31 March 2020, assuming that the profit made by the company during that period amounted to $120 000.

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GALSTON LTD Trial Balance as at 30 September 2019 Account Share capital (700 000 shares fully paid) General reserve Retained earnings Current tax liability Accounts payable Mortgage payable Debit Credit $ 700 000 240 000 117 800 30 000 120 900 Bank overdraft (current) Other liabilities (current) Property, plant and equipment (net) Accounts receivable Inventory Prepayments Patent $ 890 800 90 200 370 600 1000 100000 $1452600 180 000 60 600 3300 $1 452 600