Question 2 (7 marks) York Ltd. was registered on 1 July 2020. The next day, the directors issued a disclosure docu- ment inviting applicants for 700,000 ordinary shares with an issue price of $1. The shares were payable 20on application and 40 on allotment. By the end of July, the company had re- ceived exactly 700,000 applications, together with the correct application monies. The direc- tors allotted these shares on 1 August. The correct allotment monies were received by the end of September. On 1 October 2020, the directors made a call of 25 per share. Call monies were due and payable by 31 October, and were received by then except in respect of one parcel of 10,000 shares. Required: (a) Prepare journal entries with explanations to record the transactions above. (6 marks) (b) Prepare an extract from the balance sheet as at 31 October 2020, showing owners' equity (1 marks)