Hobart Ltd issues a prospectus inviting the public to subscribe for 10 ordinary shares of $2.00 each. The terms of the issue are that $1.50 is to be paid on application and the remaining $0.50 with one month of allotment. Applications are received for 12 shares during July 2020. The directors allot 10 shares on 5 August 2020. All applicants receive shares on a pro rata basis. The amounts payable on allotment are due by 5 September 2020. By 5 September 2020 the holders of two shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 10 September 2020. The shares are resold on 15 September as fully paid. Am amount of $1.80 per share received.

Required:

Provide the journal entries necessary to account for the above transactions and events.