Series of independent situations Prepare journal entries to implement the following independent decisions. 1. To redeem out of retained earnings 150 000 preference shares, issued and paid to $2.50, at a price of $2.60. The preference shares had been treated as equity. 2. To redeem 150 000 preference shares, recorded as liabilities, fully paid at $1.50 each, for $1.60, this being funded by the issue of 240000 ordinary shares at an issued price of $1 payable in full on application. Assume all shares were applied for and allotted. 3. To redeem 20 000 $50 debentures by purchasing them on the open market for $48 each. They were previously issued by the company at nominal value. 4. To issue 50 000 options, at an issue price of 75c per option. Each option allows the holder to subscribe for one ordinary share at an exercise price of $3.60 per share on or before 1 July 2017. 5. By 1 July 2017, 40000 of the options issued in (4) above were exercised and shares were issued. The remaining options lapsed. 6. To issue 150 000 $25 debentures, payable in full on application. Applications were received for 180 000 debentures. Allocation was done on a first-come first served basis and excess application money was refunded to unsuccessful applicants. 7. To convert $25 000 of 9% convertible notes. Holders of $20 000 of the notes do not wish to exercise their rights and request payment in cash, and holders of the remaining $5000 decide to convert on the basis of one ordinary share paid to 75c for each $1 note held. The company has recognised all of the notes as a liability