Efficiency Ltd is an existing company that previously issued 200,000 ordinary shares of $10 each and 25 000, 8% preference shares at $20 each.

On 1 July 2019 Efficiency Ltd decided to raise additional capital via a rights issue of 1 to 5 at $10 per share for every 5 shares currently held. The current market price is $11. A total of 40,000 ordinary shares are to be offered.

Applications for 40,000 shares were received by the closing date of 31^st August, 2019.

On 15^th September 2019 shares were issued.

Directors announced on 30^th June 2020 a profit before tax of $500,000, of which $150,000 related to income tax.

On 5th July 2020, the board of directors during the Annual General Meeting announced that the company will pay preference dividends and ordinary dividends of 4.6 cents per fully paid equivalent share from retained earnings and $100,000 was transferred from the general reserve to retained earnings.

REQUIRED:

Prepare properly formatted general journal entries to record the above transactions. Narrations are NOTrequired.