Tele Strata Ltd (TSL) is an ASX listed company which provides fibre to the home broadband connectivity for telecommunication services. The company has always been at the forefront of telecommunications development and, as a result, has been very successful. TSL has a strong record of rewarding its shareholders. The equity section of its Balance Sheet as at 30th June 20X6 presents as follows:

EQUITY $ 000s

Share Capital

Ordinary shares paid to $4.50 40,320

7.5% pa $10.00 Preference shares 50,000

Reserves

General Reserve 9,576

Foreign exchange translation 8,545

Retained Profits 11,872

TOTAL EQUITY 120,313

NB All Ordinary shares were issued to $4.50.

Share issue costs of $1,800,000 have been offset against the Ordinary share capital.

The Preference shares are non-participating and dividends on those are paid every quarter on the last day of August, November, February and May.

TSL pays Ordinary share dividends twice a year (ie an interim and final dividend) and also offers its shareholders regular non-renounceable share rights issues. On the 15th December 20X5 TSL offered a Dividend Reinvestment Plan for its Ordinary shareholders. The plan is effective on any Ordinary share dividends paid after the 1st January 20X6 and 50% of ordinary shareholders accepted the offer. Shareholders are issued with fully paid shares based on the value of the ASX share price on the day of the dividend declaration.

The following are the ASX closing share prices for TSL on the dates provided.

Date	Closing Share Price $	Date	Closing Share Price $
1/7/X5	2.12	21/1/X6	2.62
31/8/X5	2.24	31/1/X6	2.89
12/9/X5	2.26	15/2/X6	3.90
21/9/X5	2.40	28/2/X6	3.95
1/10/X5	2.34	3/3/X6	3.88
10/10/X5	2.34	15/3/X6	4.00
2/11/X5	2.32	1/4/X6	4.01
15/11/X5	2.33	16/4/X6	3.97
30/11/X 5	2.40	30/4/X6	4.10
24/12/X5	2.60	10/5/X6	4.12
2/1/X6	2.61	31/5/X6	4.23 .

STAGE 3 JOURNAL ENTRIES 10 marks

On 1st April 20X7 the Board of Directors decided raise some further capital to assist in the acquisition of another company. As a result it agreed to offer to Ordinary shareholders a non-renounceable share rights issue of 1 share for every 11 held. The rights shares can be taken up at 92% of the ASX share price on the day of the announcement of the issue.

On the 30th April 20X7 the announcement was made and the offer was reasonably well received with 80% of shareholders taking it up. Money from the offer was received on the 31st May 20X7.

REQUIRED

From the primary information together with the information provided above and building on the information from Stages 1 and 2 of Part B of the assignment, record the general journal entries for all transactions for the period 1st April 20X7 to 30th June 20X7.

If necessary round numbers to the nearest whole dollar or the nearest number of whole shares.

In addition to share prices previously supplied you also have the following information.

Date	Closing Share Price $	Date	Closing Share Price $
15/6/X6	$4.10	24/12/X6	$3.00
30/6/X6	$4.00	2/1/X7	$2.85
15/7/X6	$3.92	15/1/X7	$2.90
31/7/X6	$3.86	6/2/X7	$2.87
12/8/X6	$3.85	28/2/X7	$2.95
10/9/X6	$3.45	15/3/X7	$3.00
21/9/X6	$3.60	1/4/X7	$3.10
16/10/X6	$3.36	15/4/X7	$3.09
23/10/X6	$3.28	30/4/X7	$3.14
2/11/X6	$3.19	18/5/X7	$3.17
30/11/X6	$3.15	31/5/X7	$3.28