Question 4 Louvre Bhd's equity at 30 June 2019 was as follows: RM 400,000 ordinary shares, issued at RM1.60, fully paid 500,000 ordinary shares, issued at RM2, called to RM1.20 180,000 redeemable preference shares, issued at RM1, fully paid Calls in advance (10,000 ordinary shares) Share issue costs General reserve Retained earnings 640,000 600,000 180,000 8,000 (7,000) 70,000 300,000 The following events occurred during the year ended 30 June 2020: 2019 July 15 Aug. 31 Sept 10 Oct. 1 31 2020 Jan. 3 The final call, due 31 August, was made on the partly paid shares. All call money was received, except for that due on 15,000 shares. 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. 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 RM1.50 per share, exercisable on or before 15 April 2020. 40,000 options were taken up by shareholders, for which all money due was received A prospectus was issued, inviting applications for 110,000 ordinary shares at an issue price of RM2, 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 RM5,500. The issue closed fully subscribed, with all money due having been received. The 110,000 shares were allotted, and the underwriting commission was paid. The directors resolved to redeem the preference shares out of the proceeds of the January share issue for RM1.05 per share. Cheques were issued to the preference shareholders. 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 31 Feb 5 18 26 15 Apr. Required: Prepare the journal entries to record the transactions of Louvre Bhd up to and including that which took place on 16 December 2020. (Show all workings.) [Total: 25 Marks]