QUESTION 3 (6 marks) a) Prepare general journal entries, including any closing entries required, to record the following transactions that occurred during the year ended 30 June 2020. Date Details Dr Cr Date Details Dr Cr Date Details Dr Cr Date Details Dr Crb) Prepare the equity section of the statement of financial position as at 30 June 2020. $ Share capitalQUESTION 3 (30 Marks) The equity of Penang Lid at 30 June 2019 was as follows: 400.000 ordinary shares, issued at $1.60, fully paid $ 640.000 500,000 ordinary shares, issued at $2, called to $1.20 600,000 180,000 redeemable preference shares, issued at $1, fully paid 180,000 Calls in advance (10,000 ordinary shares) 8.000 Share issue costs (7.000) General reserve 70.000 Retained earnings 300,000 The following events occurred during the year ended 30 June 2020: 2019 July 15 The final call, due 31 August, was made on the partly paid shares. Aug 31 All call money was received, except for that due on 15,000 shares. Sept 10 In accordance with the constitution, the shares on which the call was unpaid were forfeited. The company is entitled to keep any balance from forfeiture of shares. Oct. 1 The company offered ordinary shareholders 1 option (at a price of 65 cents per option) for every 10 shares held. Each option entitled the holder to buy 1 ordinary share at a price of $1.50 per share, exercisable on or before 15 April 2020. 31 40,000 options were taken up by shareholders, for which all money due was received. 2020 Jan 3 A prospectus was issued, inviting applications for 110,000 ordinary shares at an issue price of $2, payable in full on application. The purpose of the issue was to fund the redemption of the preference shares. The issue was underwritten at a commission of $5,500. 31 The issue closed fully subscribed, with all money due having been received. Feb. 5 The 110,000 shares were allotted, and the underwriting commission was paid. 18 The directors resolved to redeem the preference shares out of the proceeds of the January share issue for $1.05 per share. 26 Cheques were issued to the preference shareholders. Apr. 15 32,000 shares were issued as a result of 32,000 options having been exercised, for which money had been received The unexercised options lapsed. Question 3 is continued on the next pageQuestion 3 continued Required a) Prepare general journal entries, including any closing entries required, to record the following transactions that occurred during the year ended 30 June 2020 p Prepare the equity section of the statement of financial position as at 30 June 2020