Scone Ltd was registered on 1 February 2019. The following events occurred in that year.

Required

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

(b) Show the equity section of the balance sheet as at 18 March 2019.

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Feb. 1 Mar. 15 Mar. 18 50000 ordinary shares were allotted to the original members. The shares were paid for in full at a price of $1 each. A prospectus was issued for 100 000 10% preference shares and 150 000 ordinary shares, payable in full on application. The issue prices of the preference shares and ordinary shares respectively were $2 and $1. Applications were received for 100 000 preference shares and 220000 ordinary shares. The directors allotted the shares in terms of the prospectus, excess monies being returned to unsuccessful applicants.