Exercise 2.14 RIGHTS ISSUE, CALL ON SHARES, ISSUE OF OPTIONS ** The share capital of Syria Ltd on 30 June 2014 was: 120 000 'A' ordinary shares issued at $1.50, paid to 75c 50 000 'B' ordinary shares issued at $2.00, fully paid 100 000 9% preference shares issued at $1, paid to 80c $ 90 000 100 000 80 000 $270 000 The following transactions occurred during 2014 and 2015: 2014 Nov. 1 The company makes a one-for-five rights offer to its 'B' ordinary shareholders. The rights are tradable, and allow holders to obtain 'B' ordinary shares for $2.25 per share, payable in full on application. Nov. 30 The holders of 40 000 'B' ordinary shares accept the rights offer by the expiry date. The shares are duly allotted. 2015 Jan. 16 A call of 75c per share is made on all 'A' ordinary shares. All call money except that owed by the holder of 10000 shares is received by 31 January Feb. 5 Shares on which calls are unpaid are cancelled. Mar. 17 To assist with cash flow difficulties, the company issued a prospectus inviting offers for 50000 options to acquire 'A' ordinary shares at an issue price of 60c per option, payable in full on application. Each option, exercisable prior to 31 December 2015, allows the holder to acquire one 'A' ordinary share for $1.78. Mar. 31 Offers had been received for 35 000 options and these were duly allotted. Dec. 31 The holders of 25 000 options had exercised their options, with money paid on exercise, and 25 000 'A' ordinary shares were issued. The remaining options lapsed. Costs of issuing the shares amounted to $2000 Required Prepare journal entries to record the above transactions in the records of Syria Ltd