SECTION A: QUESTION 1 60 marks ) ler On 1 January 2013, date of incorporation, a company issued: - 100000 ordinary shares, issued at R3,50 each - 5000010% cumulative, redeemable preference shares, issues at R2 each. The preference shares must be redeemed on 31 December 2016 at a premium of 20 cents per share. The effective rate of interest paid is calculated to be 11,25563551% There are a total of R120000 authorized ordinary shares (unchanged since incorporation). Half of the authorized preference shares have been issued. Retained earnings on 1 January 2015 was R150 000. Total comprehensive income (after taking into account the above information) was R80 000 in 2015. An ordinary dividend of R10000 was declared in 2015. Required: Calculate and show all journal entries from the date of issue to the date of redemption (excluding the redemption). You are also required to prepare an effective interest rate table to show your workings. s a