Dahlitz Ltd was registered on 2 January 2025. The following events occurred in that year.

Required

(a) Prepare entries in general journal form to record the transactions.

(b) Show the equity section of the balance sheet as at 18 March 2025.

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Jan. 2 100 000 ordinary shares were allotted to the original members. The shares were paid for in full at a price of $5 each. A prospectus was issued for 100 000 8% preference shares and 250 000 ordinary shares, payable in full on application. The issue prices of the preference shares and ordinary shares respectively were $8 and $5. Apr. 13 Applications were received for 280 000 ordinary shares and 100 000 preference shares. May. 1 The directors allotted the shares in terms of the prospectus, excess money was returned to unsuccessful applicants.