On 30 April, Tamworth Ltd issued 40 000 shares for $6 each, payable $2 on application, $2 on allotment and the remainder due by two equal calls on 30 June and 31 August. Share issue costs of $3500 were paid on 31 May.

Required

Prepare journal entries (in general journal format) to record the share issue up to collection of allotment money assuming:

1. The shares were fully subscribed

2. The shares were undersubscribed by 6000 shares.