Cartoon Ltd is listed on the Australian Stock Exchange. It has 3 million shares issued at a price of $5.50 per share. The investors were required to pay $2.00 on application and $1.00 on allotment. Both these amounts were paid in full. A first and final call of $2.50 was made and was due on 30 August 2003. At the end of November the directors of the company elect to forfeit 50 000 shares on which the holders have failed to pay the call. Cartoon Ltd reissues the shares fully paid up for a price of $4.75 and incurred costs of $1500. What are the entries required to forfeit the shares, reissue the shares, and make a refund if appropriate?
E) None of the given answers.

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The Answer of Cartoon Ltd is listed on the Australian Stock Exchange. It has 3 million shares issued at a price of $5.50 per share. The investors were required to pay $2.00 on application and $1.00 on allotment. Both these amounts were paid in full. A first and final call of $2.50 was made and was due on 30 August 2003. At the end of November the directors of the company elect to forfeit 50 000 shares on which the holders have failed to pay the call. Cartoon Ltd reissues the shares fully paid up for a price of $4.75 and incurred costs of $1500. What are the entries required to forfeit the shares, reissue the shares, and make a refund if appropriate?
E) None of the given answers.

Cartoon Ltd Is Listed on the Australian Stock Exchange