"The follos Required (a) Prepare the journal entries to give effect to the above events. (b) Prepare the equity section of the statement of financial position at 31 December 2015. 2.6 ISSUE OF ORDINARY AND PREFERENCE SHARES ** Prepare journal entries and ledger accounts to record the following transactions for Kuwait Lad: 2013 July 25 Aug 31 Sept. 1 2015 April 1 Nox. 1 Nov 30 Dec. 1 April 10 A prospectus was issued inviting applications for 100 000 ordinary shares at an issue price of $1.50, fully payable on application. The prospectus also offered 100000 10% preference shares at an issue price of $2, fully payable on application. The issue was underwritten at a commission of $4500, being $500 relating to the issue of ordinary shares and the balance for preference shares. All unsuccesslul application monies were to be returned to the applicants. Applications closed with the ordinary issue oversubscribed by 40000 shares and the preference shares undersubscribed by 15000 shares. 100000 ordinary shares were allotted and applications for 40000 shares were rejected and money refunded. 100 000 preference shares were also allotted. The underwriter paid for the shares allocated to her, less the commission due. Dec. 5 April 15 2014 April 10 April 20 Required (a) Prepare (b) Ana 7 RIGHTS ISSUE, PLACEMENT OF SHARES ** The shareholders' equity of Iraq Lad on January 2014 was: he $400000 4...id capital of each class. 2.3 RIGHTS ISSUE * Laos Lad had share capital of one million $1 shares, fully paid. As it needed finance for certain construc- Lion projects, the company's management decided to make a non-renounceable rights issue to existing shareholders of 200000 new shares at an issue price of $5 per share. The rights issue was to be fully underwritten by Finance Brokers 1.ed. The prospectus was issued on 15 February 2013 and applications closed on 15 March 2013. Costs associated with the rights issue and the eventual issue of the shares were $10000. Elements (a) If 80% of the rights were exercised by the due date, provide journal entries made by laos lad in relation to the rights issue and the eventual share isstie. (b) If the rights issue was not underwriuen and any unexercised rights lapsed, what would be the required journal entries? "The follos Required (a) Prepare the journal entries to give effect to the above events. (b) Prepare the equity section of the statement of financial position at 31 December 2015. 2.6 ISSUE OF ORDINARY AND PREFERENCE SHARES ** Prepare journal entries and ledger accounts to record the following transactions for Kuwait Lad: 2013 July 25 Aug 31 Sept. 1 2015 April 1 Nox. 1 Nov 30 Dec. 1 April 10 A prospectus was issued inviting applications for 100 000 ordinary shares at an issue price of $1.50, fully payable on application. The prospectus also offered 100000 10% preference shares at an issue price of $2, fully payable on application. The issue was underwritten at a commission of $4500, being $500 relating to the issue of ordinary shares and the balance for preference shares. All unsuccesslul application monies were to be returned to the applicants. Applications closed with the ordinary issue oversubscribed by 40000 shares and the preference shares undersubscribed by 15000 shares. 100000 ordinary shares were allotted and applications for 40000 shares were rejected and money refunded. 100 000 preference shares were also allotted. The underwriter paid for the shares allocated to her, less the commission due. Dec. 5 April 15 2014 April 10 April 20 Required (a) Prepare (b) Ana 7 RIGHTS ISSUE, PLACEMENT OF SHARES ** The shareholders' equity of Iraq Lad on January 2014 was: he $400000 4...id capital of each class. 2.3 RIGHTS ISSUE * Laos Lad had share capital of one million $1 shares, fully paid. As it needed finance for certain construc- Lion projects, the company's management decided to make a non-renounceable rights issue to existing shareholders of 200000 new shares at an issue price of $5 per share. The rights issue was to be fully underwritten by Finance Brokers 1.ed. The prospectus was issued on 15 February 2013 and applications closed on 15 March 2013. Costs associated with the rights issue and the eventual issue of the shares were $10000. Elements (a) If 80% of the rights were exercised by the due date, provide journal entries made by laos lad in relation to the rights issue and the eventual share isstie. (b) If the rights issue was not underwriuen and any unexercised rights lapsed, what would be the required journal entries