The directors of Behrens Ltd decided to issue 300 000 ordinary shares at $1 each. 25 cents per share was payable on application, 25 cents per share on allotment and the balance through two equal calls. Applications were received for 250 000 shares, which were duly issued and allotment money was paid in full. The journal entries to record the allotment would include a:

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The allotment money is 25 cents per share for 250,000 shares, which totals $62,500. The journal entry would debit the allotment account to recognize the amount due from shareholders.

The Directors of Behrens Ltd Decided to Issue 300 000