On 1st December 2018 Canterbury Construction Limited purchased 50 hectares of farmland in Morinsville from Te Aorura Farms Limited. The market value of the farmland as at 1st December 2018 was $2,500,000. Canterbury Construction Limited issued 1,400,000 ordinary shares to Te Aorura Farms Limited as purchase consideration for the acquisition of the farmland. The market value of the ordinary shares at the time of the share issue was $1.75. Required: Prepare general journal entries in the books of Canterbury Construction Limited to record the above transaction. On 31st March 2018, Waikato Steel Limited decided to repurchase 100,000 ordinary shares that were originally issued at a price of $4 per ordinary share. The repurchase price was $4.80 and the repurchased shares were retained by the company to be used in future years as bonus shares to reward its directors. (a) Briefly explain why Waikato Steel Limited must satisfy the solvency test. Explain how the company can satisfy the solvency test. (b) Prepare general journal entries (without narrations) in the books of Waikato Steel Limited to record the repurchase of the ordinary shares on 31st March 2018.