Question 1 (30 Marks) On 01 January 2010, the company was incorporated with an authorized ordinary share capital of 150 000 ordinary shares of 1 each and 50 000 redeemable preference shares (fixed annual dividend of 10c per share). The post-closing trial balance of Lilly Petals Limited as at 31 December 2022 after the provisional Statement of Profit or loss & other comprehensive income was drafted, is presented below: LILLY PETALS LIMITED POST-CLOSING TRIAL BALANCE AS AT 31 DECEMBER 2022 Details Debit Credit Ordinary share capital 100 000 Ordinary share premium 5 000 Retained earnings 43 000 Redeemable preference share capital (40 000 at N$1 each) 40 000 Land and Buildings 100 000 Plant and Machinery 60 000 Underwriting commission- preference shares 4 000 Share issue expenses- preference shares 2 000 Bank 22 000 188 000 188 000 Additional information: The directors decided, with the necessary general meeting approval to implement these decisions on 01 January 2023 in this order: 1. To convert the ordinary par value shares into no par value. 2. The preference shares are to be redeemed at a premium of 5c per share. 3. The redemption of the preference shares must be financed partly from the issue of 10 000 ordinary shares at N$2, each and partly out of the current bank balance. 4. The ordinary shares were offered to the public. o The issue was underwritten in full by Down-Under Ltd for an underwriting commission of 6% o The public subscribed for 8 000 shares o All the shares were allotted on 01 January 2023 o Share issue expenses amounted to N$500. 5. The directors wish to write off all commission and share issue expenses immediately after the redemption of the preference shares. 6. Subsequent to the above transactions, there must be a capitalization issue of one ordinary share for every eight already held at the current market price of N$2 per share. YOU ARE REQUIRED TO: 1) Prepare and present the general journal entries for the decisions on 01 January 2023. (Narrations are not required).