Consider the following equity section of Cellphone S$.$A$.$ as at $31$ December $2015.$

During the reporting period, the following transactions occurred.

On May $10,$ the director decided to declare an interim dividend after satisfying the

solvency test. The dividend is $$0\mathrm{.}5$ per ordinary share and $$0\mathrm{.}3$ per preference share. The

interim dividend was paid ${31}^{th}$ May.

On September $15,$ the company makes a $1$:$8$ bonus issue of ordinary shares and $1$:$10$

bonus issue of preference shares.

On November $1,$ the company offered $1$ for $4$ cash issue of ordinary shares and required

to pay $$2\mathrm{.}5$ on application. The application closed on $30$ November with $80\%$ of the

ordinary shareholders taking the offer. The shares were allotted.

On $15$ December, the director decided to declare final dividends after satisfying the

solvency test. The dividend is $$0\mathrm{.}8$ per ordinary share and $$0\mathrm{.}6$ per preference share. The

final dividend was paid $31$ December.

The balance day of Cellphone S$.$A$.$ is $31$ December and net profit after tax is $$3,800,000.$

Required

a$)$ Provide the journal entries to record the transactions.

b$)$ Produce the equity section of balance sheet as at $31$ December $2016.$