Cumnor Hill Ltd issues 1 million redeemable preference shares of $2.00 each on 1st July 2019. The shares offer a rate of return of 7 per cent per annum. The shares are redeemed at the option of the shareholders on 30th June 2021 Required: a) Would you classify these preference shares as debt or as equity? Why? (1 mark) b) Provide the journal entries to account for the issue and subsequent redemption of the shares, assuming that the issue was by a private placement and that the shares are redeemed out of profits. (15 marks) c) What effect does the redemption of the preference shares have on the total share capital once the ournal entries are completed. (1 mark)