1. Share issue: a. During the first quarter of 2020 financial year, the directors decided to issue 350,000 shares, at an amount of R4.50 per share. The share-issue costs were R52,500.

2. Office Rental: a. On 1 January 2018, DA signed a 5-year lease agreement for office space in Sandton. Per the agreement, DA is required to pay R 43,000 per month (in arrears), with payment being due on the 6" day of the following month.

3. Insurance: a. DA has an active insurance policy over their construction equipment. The insurance premiums are normally R14,250 per month. On 1 September 2020, DA decided to pay the insurance premiums for the next 12 months in advance, as this entitled DA to a 5% discount on the above amount.

4. Bad debts:

a. DA received a notification that one of their major debtors, Barry Renovations (Pty) Ltd, was in liquidation. This debtor makes up 75% of the debtors balance at year end. Management of DA have after careful deliberation concluded that only 20% of the amount owed is recoverable.

b. Management of DA have correctly estimated that the allowance for expected credit losses for 2020 should be 5% of all other debtors.

5. Debentures: a. DA issued 150,000 10% debentures of R10 each on 1 January 2020 at a discount of 5%. These debentures are redeemable at par value 5 years after issue. The effective interest rate is 11.365%. 6. Dividend: On 28 December 2020 the Directors of DA declared a dividend of R1.20 per share. b. This dividend is subject to withholding tax of 20%. C. As at 31 December 2020, the dividend had not yet been paid.

Required:

Provide the Journal Entries that need to recorded to account. For the 31 December 2020.