Finsolutions Ltd has entered the following transactions during their December 2022 financial year-end:

TRANSACTION 1: On 1 August 2022 Finsolutions Ltd issued 7 500 compulsory convertible bonds with a face value of R70 per bond. The bonds are compulsory convertible on 1 August 2026 into two ordinary shares for every bond held. The market-related interest rate of 8% on the bonds is payable annually in arrears. The market interest rate for similar bonds without conversion is 10%.

TRANSACTION 2: On 1 January 2022 Finsolutions Ltd purchased 5 000 debentures in ABC Ltd at a dis-count of 10% on the face value of R50 per debenture. The market-related interest rate on similar debentures was 16,51433%. A coupon rate of 13% per annum is payable in arrears on 30 June and 31 December. The debentures will be repaid on 31 Decem-ber 2025 at face value. Transaction costs paid by Finsolutions Ltd amounted to R1 500. The investment in debentures is held within the business model with the ob-jective to collect contractual cash flows of interest and principal. On 1 January 2022 Finsolutions Ltd assessed the probability that ABC Ltd might fault on payments and estimated the 12-month expected credit losses on the debentures to be R1 800. At the financial year end, 31 December 2022, there was no change in the estimation of the 12-month expected credit losses.

TRANSACTION 3: Finsolutions Ltd acquired an investment in DEF Ltd, a listed company, for share trad-ing purposes. The investment of 30 000 ordinary shares in DEF Ltd was made on 1 February 2022 for a total amount of R450 000. Transaction costs paid by Finsolutions Ltd amounted to R2 200. At year-end, the market value per share amounted to R24,50 each.

TRANSACTION 4: Finsolutions Ltd acquired 20 000 ordinary shares in an unlisted company, GHI Ltd, to hold as a long-term investment. The price per share at the acquisition date on 9 Sep-tember 2022 was R13,30 each. Transaction costs paid by Finsolutions Ltd amounted to R2 500. At year-end, the market value per share amounted to R23,50 each. The management of Finsolutions Ltd irrevocably elected in terms of IFRS 9.5.7.5 to present subsequent changes in the fair value of the investment in GHI Ltd in other comprehensive income.

REQUIRED: Prepare all the journal entries relating to transactions 1 to 4 in the records of Finsolutions Ltd for the year ended 31 December 2022.

2.1) Transaction 1 (11 marks) 2.2) Transaction 2 (20 marks) 2.3) Transaction 3 (5 marks) 2.4) Transaction 4 (4 marks) Dates are required. Narrations are not required. Show all workings clearly. Ignore VAT and Income tax.