Shares, options, dividends and reserve transfers    LO6, 8, 9 The equity of Raw Prawn Ltd at 30 June 2019 consisted of: 400 000 ordinary ‘A’ shares issued at $2.00, fully paid $800 000 300 000 ordinary ‘B’ shares issued at $2.00, called to $1.20 360 000 50 000 6% preference shares issued at $1.50, fully paid 75 000 Share options issued at 60c, fully paid 24 000 Retained earnings 318 000 The options were exercisable before 28 February 2020. Each option entitled the holder to acquire two ordinary ‘C’ shares at $1.80 per share, the amount payable on notification to exercise the option. Required 1. Prepare general journal entries to record the following transactions, which occurred during the year ended 30 June 2020. 2019 Sept. 15 The preference dividend and the final ordinary dividend of 16c per fully paid share, both declared on 30 June 2019, were paid. The directors do not need any other party to authorise the payment of dividends. Nov. 1 A 1‐for‐5 renounceable rights offer was made to ordinary ‘A’ shareholders at an issue price of $1.90 per share. The expiry date on the offer was 30 November 2019. The issue was underwritten at a commission of $3000. 2019 Nov. 30 Holders of 320 000 shares accepted the rights offer, paying the required price per share, with the renounced rights being taken up by the underwriter. Ordinary ‘A’ shares were duly issued. Dec. 10 Money due from the underwriter was received. 2020 Jan. 10 The directors transferred $35 000 from retained earnings to a general reserve. Feb. 28 As a result of options being exercised, 70 000 ordinary ‘C’ shares were issued. Unexercised options lapsed. Apr. 30 The directors made a call on the ordinary ‘B’ shares for 80c per share. Call money was payable by 31 May. May 31 All call money was received except for that due on 15 000 shares. June 18 Shares on which the final call was unpaid were forfeited. 26 Forfeited shares were reissued, credited as paid to $2, for $1.80 per share, the balance of the forfeited shares account being refundable to the former shareholders. 27 Refund paid to former holders of forfeited shares. 30 The directors declared a 20c per share final dividend to be paid on 15 September 2020. 2. Prepare the equity section of the statement of financial position as at 30 June 2020.