- Prepare the companys statement of financial position as at 31 October 2020

The draft statement of financial position of Fonex ple at 30 September 2020 was as follows: $000 $000 1,400 32,170 5,450 Ordinary shares of $1 each, fully paid 12,000 Product development costs 12% preference shares of $1 each, Sundry assets fully paid 8,000 Cash and bank Share premium 4,000 Retained (distributable) profits 4,600 Payables 10,420 39,020 39,020 Preference shares of the company were originally issued at a premium of 2p per share. The directors of the company decided to redeem these shares at the end of October 2020 at a premium of 5p per share. They also decided to write off the balances on development costs and discount on debentures. All write-offs and other transactions are to be entered into the accounts according to the provisions of the Companies Acts and in a manner financially advantageous to the company and to its shareholders. The following transactions took place during October 2020: i. On 4 October the company issued for cash 2,400,000 10% debentures of $I each at a discount of 249% 11. On 6 October the balances on development costs and discount of debentures were written off . 111. On 12 October the company issued for cash 6,000,000 ordinary shares at a premium of 10p per share. This was a specific issue to help redeem preference shares. . iv. On 29 October the company redeemed the 12% preference shares at a premium of 5p per share and included in the payments to shareholders one month's dividend for October V. On 30 October the company made a bonus issue, to all ordinary shareholders, of one fully paid ordinary share for every 20 shares held. vi. During October the company made a net profit of $275,000 from its normal trading operations. This was reflected in the cash balance at the end of the month