QUESTION 2 (15 MARKS)

On 1 January 2019 (date of incorporation) Tandabantu Limited issued:

100 000 ordinary shares at R2,50 each. 50 000 10% non-cumulative, non-redeemable preference shares at R3 each. Half of the authorised ordinary and preference shares have been issued.

The preference dividends are discretionary dividends. All preference dividends were declared and paid before year end except for 2020, when the preference dividend was declared but not yet paid as of 31 December 2020.

Required: Provide all journal entries from the date of issue of the preference and ordinary shares to 31 December 2020.