> Question Completion Status: Authorised share capital 1 500 000, ordinary shares of no-par value. 300 000, 11% non-cumulative, redeemable preference shares of no-par value. Issued share capital Rand 1 000 000, ordinary shares of no-par value 2 354 000 250 000, 11% non-cumulative, redeemable preference shares of no-par value 687 500 Retained earnings 3 860 000 Additional information: The preference shares were issued several years ago at a price of R2,75 each and are redeemable at the option of the company. Mash Potato Ltd therefore recognised the redeemable preference shares as an equity instrument. The payment of the preference dividends is at discretion of the issuer. The board of directors of Mash Potato Ltd passed a resolution on 2 December 20.20 in terms of which the preference shares are to be redeemed on 31 December 20.20 at a premium of R0,05 per share. The dividends due were declared and paid on 30 December 20.20. Mash Potato Ltd will fund this redemption out with the issue of 100 000 ordinary share issued at R3 per share. The rest of the redemption payment must be funded by raising a long-term bank loan, repayable after 5 years. You may assume that on 20 December 20.20 all ordinary shares were issued to the public and the loan-funding was received Ignore all tax implications. Prepare the general journal entry on 2 December 20.20 when the board of directors of Mash Potato Ltd passed a resolution for the redemption of preference shares