QUESTION 4 Spice Ltd makes an offer to the general public of 10 million shares at an issue price of $5.00. Spice Ltd requires a $2.50 per share payment on application. Another $2.50 is to be paid as a call at a future date to be determined by the board of directors. On application money was received on 12 July for exactly 10 million shares and shares were allotted on that date. On 28 July, 9.5 million shareholders paid their call moneys. The 500,000 forfeited shares were all successfully auctioned for $4.50 per share. The journal to record the forfeiture of the shares is: DR Cash 2,250,000 DR Forfeited Shares Account 250,000 CR Share Capital 2,500,000 DR Share Capital 2,500,000 CR Call 1,250,000 CR Forfeited Shares Account 1,250,000 DR Share Capital 1,250,000 DR Application 1,250,000 CR Call 1,250,000 CR Forfeited Shares Account 1,250,000 DR Share Capital 2,500,000 CR Forfeited Shares Account 2,500,000