Karen Limited has a financial year ending 28 February. Ordinary share capital of the business consists of the following: Authorised: 1 000 000 ordinary shares of no par value Issued: 750 000 shares of no par value Balances on 1 March 2019: Ordinary share capital Retained earnings Land Transactions for the year ended 29 February 2020: R 750 000 25.000 500 000 1. The company issued all the remaining (unissued) shares at 250c each. 2. The directors (underwriters) bought 40% of the available shares and paid for them in full. 3. Applications were received from the public for 170 000 shares. 4. The entire share issue was underwritten by Ewonke Ltd at 5% commission. 5. All the available shares were allotted to the public. 6. Surplus application money was refunded to unsuccessful applicants. 7. Cheque payments for share issue expenses amounted to R12 000 was made. 8. The account of the underwriter was settled. 9. Further share issue expenses were paid by EFT, R9 000. 10. The share issue expenses and the underwriting commission were written off immediately. Further information: Karen Limited has accurately determined that a profit before tax of R270 000 was made for the year ending 29 February 2020. The applicable company tax rate is 28%. 15% of the profit for the year (net profit) is to be transferred to a non-distributable general reserve. An interim dividend of R50 000 was declared and paid out during the current financial year. . A resolution was passed at the director's meeting to recommend a final ordinary share dividend of 10c per share, on 29 February 2020. The land was revalued to R600 000, to reflect the fair value on 29 February 2020. REQUIRED: (a) Provide entries in general journal form, with narrations, to record all aspects relating to the issue of the shares only, taking into account the information in Transactions 1-10 above. (13) (b) Prepare the Statement of Changes in Equity of Karen Limited for the year ended 29 February 2020, after taking into account all the information provided above. (10) (c) Refer to Point 5 of the transactions above - assuming that applications were received from the public for only 120 000 shares instead of 170 000 shares. Explain the implications that this would have on the share issue, with supporting reasons and brief calculations if applicable. (2)