The carrying amount of ABZ Inc. equity at January 1, 2018 was: Equity CU 1,200,000 Share Capital compromising 120,000 shares of CU 10 par value each Share premium 4,800,000 Share Option Reserve 300,000 Retained Earnings 18,000,000 Total Equity $24,300,000 ABZ Inc. enters in the following transactions in 2017. Date Additional Information February 1, 2018 March 31, 2018 Issues 2,000 additional ordinary shares for CU 120,000. Declares 1:1 bonus issue of 122,000 shares out of retained earnings. June 30, 2018 Issues 50,000 non-redeemable preference shares at par of CU5 per share with a 6 per cent fixed dividend on the par value payable annually (assume that 6 per cent is the market rate of interest for this type of instrument). December 31, 2018 Grants options to employees with a vesting period of three years starting from the grant date (grant date is December 31, 2018). The fair value of the options at the grant date is CU60,000. In addition, a share-based payment expense of CU50,000 for vested options granted to employees in an earlier period accountable for in 2018 relates to employee service in 2018 December 31, 2018 December 31, 2018 Reacquires 200 ABZ A equity shares at CU70 per share. Issues convertible debt with a face value of CU1,000,000. The debt has a three-year term. Interest is payable yearly in arrears at 3 per cent per year (annual rate) and the loan is convertible in full, at the holder's discretion, at any time up to maturity into 250 ordinary shares. It is unlikely that the holder will convert. When the loan is issued, the market interest rate for similar debt without any conversion option is 4 per cent. Makes a profit of CU2,000,000 for 2017. December 31, 2018 January 15, 2019 Declares a dividend of CUO.5 per share for ordinary shareholders for the year ended December 31, 2018 Prepare accounting entries to record the equity transactions in the accounting records of ABZ Inc. and after Equity for the year ended December 31, 2018. 3