Question 1 (20 Marks: 36 minutes) Delta Limited is a company listed on the Namibian Stock exchange; it is undergoing internal restructuring of its operations and needs to raise capital for this purpose. This can be done by issuing equity shares, preference shares andior debentures to the public. The company has 31 March as the year end. Authorised capital: - Ordinary equity shares 20000000 with par value of N $2.50 per share - 15% Preference shares 2000000 with par value of N\$2 per share Issued capital: - Ordinary equity shares 8000000 - 15% Preference shares Nil Some of the balances on 01 April 2022 were as follows: Transaction during the period: On 1 May 2022 the directors of Delta Limited decided to issue 4500000 shares of the remaining authorised shares. InnerCore Underwriters guaranteed the issue in return for 2.5% underwriting commission. These shares would be offered at N\$3 per share. On 31 July 2022, the closing date for the application, N\$15000 000 had been recelved from applicants for ordinary shares. The maximum number of shares was duly allotted on 31 August 2022 and InnerCore underwnters was paid. The accounting policy of the business is to maximize distributable reserves whenever it writes off preliminary and related other expenditure. Flotations cost amounting N 18500 were paid. An issue of 300000,15% preference shares was made and all the shares were taken up immediately on 31 August 2022 at par. This was the first issue of this class of shares with cividend payable annually on 28 February every year, if declared. This issue was however, not underwritten as the subscribers were institutional investors who had declared interest to take the shares. On 15 September 2022 Delta Limited's board of directors decided to distribute profits. It was proposed that to offer ordinary shareholders a dividend of N\$O.15 per share including new shareholders. This was paid on 30 September 2022 Delta made a profit of NS6 750255 for the year ended 31 March 2023 before taking into account any of the information provided above. The directors decided to write off the preiminary and flotation expenses. YOUR ARE REQUIRED TO: 1. Journalise the above transactions Narrations are not required (16.5 marks) 2. Prepare an extract of statement of changes in equity showing retained earnings column. only (3.5 marks)