question 2

Question 3 , ' _ Question 2: Accounting for Share Capital (15 marks) Not yet answered Florence Ltd makes an offer to the public for investors to subscribe for 20 Marked out of million shares. The shares are issued at $3.00 per share. Applications for 15.00 shares close on 15 July 2019, with $2.00 being paid on application and a 'l' Flag further $1.00 being payable within one month of allotment. queStiO\" By 15 July 2019 applications have been received for 22 million shares, and it is decided that all subscribers will receive shares on a pro rata basis, with any excess paid on application to be offset against the amount due on allotment. The shares are allotted on 20 July 2019. Subsequently, holders of 4 million shares fall to make their payments due on allotment by 20 August 2019. On 31 August the 4 million shares are forfeited and auctioned as fully paid. An amount of $2.50 is received for each share sold. REQUIRED: 1. How do Australian Accounting Standards require preference shares to be disclosed? (2 marks) 2. Provide the accounting journal entries necessary to account for the transactions and events above. (13 Marks) ICC)