Munce and Cassidy, the proprietors of a consulting business, decided to convert their business into a limited company known as Hawkspur Ltd. The following was the balance sheet for internal purposes at the date of the proposed conversion, 1 July 2018:

	mUNCE AND CASSIDY Balance Sheet as at 30 June 2018
	CURRENT LIABILITY Accounts payable NON-CURRENT LIABILITY Mortgage payable EQUITY Munce, Capital Cassidy, Capital		$45 000 45 000			$  15 000 20 000 90 000		NON-CURRENT ASSETS (NET) Freehold premises Equipment Fixtures and fittings CURRENT ASSETS Accounts receivable Cash at bank Inventory		$  40 000 18 000   12 000 22 000 5 000   28 000			$  70 000    55 000
						$125 000							$125 000

Hawkspur Ltd was registered on 1 July 2018. The purchase agreement provided that the assets other than cash at bank were to be taken over at the following fair values:

Freehold premises Equipment Accounts receivable less 10% Inventory Fixtures and fittings

$60 000 18 000 25 000 10 000

Munce and Cassidy were to pay the accounts payable and discharge the mortgage payable. As consideration for the sale they were to receive $40 000 in cash 7 days after the allotment of shares issued to the public and on 31 August 60 000 fully paid ordinary shares and 40 000 fully paid 10% preference shares, valued at $1 per share.

The company offered for public subscription 80 000 preference shares and 100 000 ordinary shares payable 50c per share on application, 25c per share on allotment and 25c per share 1 month after allotment. The subscription lists closed on 31 July and application money was received for 65 000 preference shares and 120 000 ordinary shares.

On 4 August, the directors proceeded to allotment, and forwarded letters of regret enclosing refund of application money to unsuccessful applicants. By 31 August, all the allotment money was received except that due on 1400 ordinary shares. The purchase price was paid to Munce and Cassidy as per agreement. Share issue costs paid on 31 August amounted to $4500.

The company purchased additional freehold property on 1 September 2018 for $195 000, satisfied by the issue of 150 000 fully paid ordinary shares, valued at $1 each, $30 000 on long-term loan, and the balance in cash.

Required

A. Prepare journal entries (in general journal form) for Hawkspur Ltd up to and including 1 September 2018.

B. Show the statement of financial position of the company as at 1 September 2018. Follow the requirements of IAS 1/AASB 101.