CLASS EXERCISE (35 Marks) XYZ Ltd was incorporated with authorized share capital consisting of 50000010% Preference shares of N$1 each and 2000000 ordinary shares of 50c each. On the 1st of January 2014, the subscribers to the memorandum took and paid for 100000 ordinary shares at par. During the year of 2014 , the remaining shares were offered to the public as follows: The offer for the subscription of share opened on 01 March 2014 and closed on 25 March 2014. Allotment of shares took place on 15 April 2015 and all transactions with the underwriter were also concluded on this date. The ordinary shares were offered at a premium of 20c per share and the preference shares were offered at par. The issue is being underwritten for a commission of 2%. A total of 600 000 preference shares and 1500000 ordinary shares were applied for and the available shares were allotted, and the necessary refunds made. Legal, advertising and marketing expenses of N$75000 relating to the establishment of the company, were in incurred and paid for on 02 February 2014 The terms of the underwriting agreement were implemented. All share issue and preliminary expenses*should be written off against the share premium account. REQUIRED: 1. Record the transactions regarding the issue of the shares in the General journal of XYZ Ltd.2.Post the journals to the appropriate General ledger accounts, balance and close off all accounts. 2. Prepare the statement of financial position as at 30 April 2014