Question 1 (25 marks) Le Grange Ltd was incorporated with authorized share capital consisting of 500 000 10% preference shares of N$ 1 each and 2 000 000 ordinary shares of 50 each On the 01 January 2014, the subscribers to the memo took and paid for 100 000 ordinary shares et par Legal, advertising and marketing expenses of 155 000 relating to the establishment of the company, were incurred and paid for on 02 February 2011 During the year of 2014, the remaining shares were offered to the public as follows: The offer for the subscription of share opened on 01 Mi and closed on 25 March 2014. The ordinary shares were offered at a premium of 30 p i nd the preference shares were offered at par. The issue is being underwritten by Le Grande Underwritten Ltd for a commission of 5%. A total of 600 000 preference shares and 1 500 000 ordinary shre p lied for. Allotment of shares took place on 15 April 2014 and the available shares were allotted and the necessary refunds made. On 21 April 2014 the with the underwriters' agreement were mplemented. All share issue and preliminary mense he written off against the share premium account. You are required to: Record the transactions (from 01 Mart 2011- shares in the general journal of Le G elte N 2014) with regard to the issue of the i s are required. (19 marks) Calculate the commission amount that is payable Grange Underwriters Ltd. (4 marks) Prepare the journal entry to write of the prelim p enses. (2 marks) Page 14 of 19