Question 1 Task Details On 30 June 2021, the equity of Macedon Ltd consisted of: 250,000 ordinary shares, issued at $3 $750,000 100,000 10% redeemable preference shares, issued at $2 $200,000 General reserve $160,000 Retained earnings $85,000 To fund the redemption of the preference shares, on 16 January 2022 the directors issued a prospectus offering 150,000 ordinary shares at an issue price of $3.50, payable $2 on application and $1.50 on allotment. The closing date for applications was 15 February. By 15 February, applications had been received for 155,000 shares. On 25 February, the directors allotted the shares. Excess application money was refunded to unsuccessful applicants. By 15 March, all allotment money had been received, and underwriter's commission of $12,500 was paid. On 31 March, the preference shares were redeemed at a 5% premium, and cheques were sent to preference shareholders on 4 April. Required Prepare the journal entries to record the transactions of Macedon Ltd for the events outlined above, ignoring preference share dividends. Narrations are required. Show all workings and calculations. (10 marks)