QUESTION $1(34$ marks$)$ Established in $2021,$ NexaTech Innovations Ltd$.($Nexa$)$ specialises in designing tailored applications for diverse business sectors$.$ Recognised in the technological industry for its innovative solutions, the company has carved out a significant market presence as of its year$-$end on $31$ December $2023.$ You have been presented with the following information: Extract of the final trail balance as at $30$ November $2023$: Account Debit$/($Credit$)$ Rand Share Capital: Class A shares $(2000$ shares$)(240000)$ Shareholders for dividends liability $(12000)$ Prospectus Extract for Share Offerings to the Public Date of Issue: $01$ December $2023$ Offer details Class A shares $20\%$ Class B shares Available shares $1000500$ Price per share R$120$ R$450$ Important Dates: Opening date for applications: $01$ December $2023$ Closing date for applications: $24$ December $2023$ Share issuance: $31$ December $2023**$ Subject to meeting minimum subscription criteria. Minimum subscription requirement Class A shares: $80\%20\%$ Class B shares: $80\%3$ HFAC$132-1-$Jul$-$Dec$2024-$SuppSA$1-$LVN$-$V$3-21112024$ Additional information: $$ After the closing date of $24$ December $2023,$ the amount of cash that has been received, per class of share subscribed for, were the following: o Class A shares account: R$98400$ o $20\%$ Class B shares account: R$175500$ On the $24$th of December $2023,$ Nexa incurred and paid the following costs regarding the additional share application and distribution: o Legal fees of R$14700$ for drafting the prospectus, ensuring regulatory compliance, and other legal services. o Printing and distribution of the prospectus was R$2500.$ This includes physical printing and electronic distribution fees. o Registration and regulatory fees of R$1250$ for association with regulatory bodies. o Consultancy fees of R$7500$ for hiring financial consultants or advisors to guide the offering process. o Overtime bonus of R$5000$ paid to the accountant for ensuring the annual financial statements are in line with the International Financial Reporting Standards. $$ On $31$ December $2023,$ the company declared a final dividend of R$5$ per share. This means shareholders will receive a dividend of R$5$ for each share they own. $$ The company paid all dividends on $31$ December $2023$ to ensure that there were no divided liabilities outstanding at the financial year$-$end. $4$ HFAC$132-1-$Jul$-$Dec$2024-$SuppSA$1-$LVN$-$V$3-21112024$ REQUIRED: $1\mathrm{.}1$ Calculate and explain the number of shares to be issued by NexaTech Innovations Ltd$.$ to the new shareholders for both Class A shares and $20\%$ Class B shares on $31$ December $2023.(6$ marks$)1\mathrm{.}2$ Prepare ALL the relevant general journal entries in the December $2023$ accounting records of NexaTech Innovations Ltd$.$ to account for the following: $1\mathrm{.}2\mathrm{.}1.$ The new Class A and $20\%$ Class B shares issued; and $(17$ marks$)1\mathrm{.}2\mathrm{.}2.$ Payment of dividends to the shareholders $(6$ marks$)$ Instructions: $$ Include dates for each entry. $$ Narrations are not required. $$ Provide detailed workings where necessary. $1\mathrm{.}3$ Assume that instead of R$175000,$ NexaTech Innovations Ltd$.$ received R$236250$ in cash for subscriptions to the $20\%$ Class B shares by the close of business on $24$ December $2023.$ Prepare the general journal entries to illustrate how to account for the $20\%$ Class B shares only. Instructions: $$ Dates and narrations are not required