art B: (60 marks)Following the case of NovoMed Limited company, NovoMed now has successfully listed onNYSE in the US and the company now is issuing a prospectus to potential investors regardinga new share issue.The prospectus is dated 1 January 202X and invites the public to apply for 900,000 ordinaryshares at $10 per share. The terms of the share issue are $4 on application, $2.50 on allotment,$2 on the first call and $1.50 on a second call.If the issue is oversubscribed the directors can make a pro-rata issue of shares and the excessapplication money will be applied to allotment and calls.On 1 March 202X applications close and applications had been received for 1,200,000 shares.A table summarizing the applications received is presented below:Shares applied for Paid to Shares Directors allotted60,000 $10.00 60,000300,000 $6.50 200,000840,000 $4.00 640,000On 15 March the shares were allotted and on 1 April all outstanding allotment money wasreceived.On 10 April share issue costs of $60,000 were paid.On 6 October the first call is made on the ordinary shares and on 31 November all the callmoney was received except for the call on 20,000 shares. The shares were forfeited on 5December and reissued at $9.50 (as fully paid) on 31 December with costs associated with theforfeited shares of $1,000 paid on 31 December.Required:a) Prepare a schedule that shows a breakup of the following items: (24 marks)b) Prepare journal entries to reflect all transactions for the year end 31 Dec 202X. (36marks)Note: the entries should be displayed in date order of the underlying transaction. Thedetailed calculations and relevant description should be listed below each entry.
