RCK ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of $2 each.The terms of the issue are that $1 is to be paid on the application and the remaining $1 within...

RCK ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of $2 each.The terms of the issue are that $1 is to be paid on the application and the remaining $1 within one month of allotment. Applications are received for 108 million shares during July 2018.The director allots 90 million shares on 15 August 2018.All applicants receive shares on a pro rata basis.The amount payable on allotment are due by 20 september 2018.By 20 september 2018 the holders of 18 million shares have failed to pay the amount due on allotment.The directors forfeit the shares on 30 september 2018. The shares are resold on 15 october 2018 as fully paid.An amount of $2 per share is received.The balance of forfeited shares is refunded on 20 october 2018. Required:Provide Journal entries necessary to account for the above transactions and events.