QUESTION 5 Total 13 Marks Smart Ltd was incorporated on the 1st July 20x7. On that date the company issued a prospectus to the public offering 10.000 ordinary shares at an issue price of $8.00 per share, payable as follows: $3.00 on application which closes on 31st August 20X74 $2.00 on allotment- $3.00 on calls at the company's discretion. Applications were received for exactly 14,000 shares on the required date as follows: Applicants for 2,000 shares paid for their shares in full (ie $8.00 per share) The remaining applicants paid only the amount required for application. The shares were allotted on the 1 September 20X7 as follows:- Those applicants who paid for their shares in full were allotted all the shares applied for. Any excess money was held and applied to the allotment and future calls. 2,000 shares by other applicants were refused and their money refunded. The remaining applications were issued in proportion to their applications and any excess money held and applied for the allotment and future calls (if relevant). Any required allotment monies were received on 30th September 20X7.- On the 1st January 20X8 the company made the first call of S2.00 per share. All shareholders paid their calls by 31st January 20X8. . Required Prepare the general journal entries in the records of Smart Ltd to record all the events described above. Narrations are not required. 13 marks Date Accounts DR CR- E- E El Et E- E- ELE CCCCCCCC E E- EL - - - E Date Accounts DRA | 2 CR PP El E- . E- E . . E EP . . . . . P P El