During the year ended 31 December 2007 ABC company Itd redeemed 1000 Sh 5 preference shares at par. As at 31 December 2006 the statement of financial position revealed: Sh 13000 7000 5000 5000 7000 3000 Other assets Bank Ordinary share capital Redeemable preference share capital Statement of comprehensive income Creditors Required: a) make journal entries to record the above information b) prepare the statement of financial position as at 31 December 2007 Assuming that: 1. 2. 3. To cater for this Abc company issued 1000 Sh 5 new ordinary shares. No new shares are issued to cater for the redemption 500 Sh 5 ordinary shares are issued