Exercise 14.12 On 30 June 2024, the equity accounts of Moray Ltd consisted of the following. 500 000 'A' ordinary shares, issued at $2.00 each, fully paid $1 000 000 100 000 5% cumulative preference shares, issued at $2 paid to $1 100 000 Options (200 000 at 5c each) Accumulated losses 10 000 (22 150) The options were on 1 June in any year between 2025 and 2028. Each option allowed the holder to buy one 'A' ordinary share for $3. The following transactions and events occurred during the year ended 30 June 2025. 2024 July 25 The directors made the final call of $1 on the preference shares. Aug. 31 All call monies were received except those owing on 100 preference shares. Sept. 7 The directors resolved to forfeit 100 preference shares for non-payment of the call. The constitution of the company directs that forfeited amounts are not to be refunded to shareholders. The shares will not be reissued. Nov. 1 Nov 30 The company issues a prospectus to the public for 500 000 'B' ordinary shares $3 payable on application (30 November 2024). The 'B' shares will receive no dividends in the first year, thereafter they will become 'A' shares. Applications for 510 000 'B' ordinary shares were received. Dec. 5 The shares were duly allotted. Oversubscriptions were paid back to the applicants. Share issue costs of $10 400 were paid. 2025 June 1 June 30 The holders of 16 000 options applied to purchase shares. All monies were sent with the applications. The shares were duly issued. Moray earned a profit for the year of $50 238 Required Prepare general journal entries to record the transactions listed. 1. 2. Show the Equity section of Moray at June 30, 2025.