(Solved by Humans)-Yusuf Ltd is a company listed on the JSE Securities Exchange. The financial director is currently

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Yusuf Ltd is a company listed on the JSE Securities Exchange. The financial director is currently preparing the financial statements for the year ended 31 December 20X3. The following information relates to its share capital:   Number Ordinary shares of C2 par value, (issued at C2.20 on incorporation – there were no share issue expenses on this issue) 1 000 000   10% C3 preference shares, (issued at par on 1 January 20X1) compulsorily redeemable at a premium of C0.50 per share on 31December 20X3 1 000 000   The effective interest rate on the preference shares is 14.8084%. The redemption of the preference shares is to be financed as follows: • A bank loan of Cl 800 000 raised on 31 December 20X3, repayable on 31 December t 20 X6; and • The issue of as many ordinary shares as is necessary at an issue price of C2.50 each (there are 3 million authorized shares still available for issue). The directors are satisfied that the company’s assets, fairly valued exceed its liabilities and that the company will be able to pay its debts as they become due. Preference dividends are always declared and paid on 31 December of each year. The preference dividends declared on 31 December 20X3 will, together with the share issue costs of C20 000, be paid out of currently available cash resources. No ordinary dividends were declared in 20X3. On 1 January 20X3, the balance in the retained earnings account was C4 000 000 and the balance in the share premium account was Cl50 000. The profit for 20X3 w;as Cl00 000 before taking into consideration the information presented above. Required: a) Prepare the effective interest rate table from the date the preference shares were issued to the date on which they were redeemed. b) Disclose the preference shares on the face of the statement of financial position as at 31December 20X2 presenting 20X1 as comparatives in as much detail as is possible, Notes are not required. c) Calculate the number of shares to be issued on 31December 20X3 in order to finance the redemption of the preference shares. d) Show all journal entries relating to the information provided above for the year ended 31 December 20X3.