Exercise 2.3 ★ SHARE ISSUE, OPTIONS Jordan Ltd has the following shareholders’ equity at 1 January 2016: Share capital — 500 000 shares Asset revaluation surplus Retained earnings £1 240 000 350 000 110 000 On 1 March the company decided to make a public share issue to raise £600 000 for new capital development. The company issued a prospectus inviting applications for 200 000 £3 shares, payable in full on application. Shareholders who acquired more than 10 000 shares were allowed to buy options at 50 cents each. These options enabled the owner to buy shares in Jordan Ltd at £3.50 each, the acquisition having to occur before 31 December 2016. By 25 March the company had received applications for 250 000 shares and for 20 000 options. The shares and options were allotted on 2 April, and money returned to unsuccessful applicants on the same day. All applicants who acquired options also received shares. By 31 December 2016, the company’s share price had reached £3.75. Holders of 18 000 options exercised their options in December. The remaining options lapsed. Required Prepare the journal entries in the records of Jordan Ltd in relation to the equity transactions in 2016.