2. Queenpharm Bhd. was incorporated with an authorized capital of RM60 million comprising of 50,000,000 shares of RM0.50 each and the balance in preference shares of RM 1 each. The Statement of Financial Position of Queenpharm Bhd. as at 30 September 2018 is given below. QUEENPHARM BHD Statement of Financial Position as at 30 September 2018 RM'000 Non-current assets Land and buildings Plant and machinery Fixtures and fittings Investments 30,100 9,550 6,150 1,500 Current assets Inventories Account receivable Bank 4,500 2,500 3.500 57.800 Issued & paid-up capital Ordinary shares of RM0.50 each 7% redeemable preference shares of RM1 each 38,000 8,000 Reserves Share premium Retained profit 1,250 6,350 Page 12 of 17 Current liabilites Account payable Accruals 3,500 700 57,800 Additional information: 1. On 1 October 2018, the Board of Directors decided to redeem 70% of 7% Redeemable Preference Shares of RM1 each at a premium of 3%. The redemption is in accordance with the terms provided for in the Articles of Association. 2. For the purpose of redemption, the company has offered to the public for subscription of 3,400,000 Ordinary Shares of RM0.50 each at an issue price of RM1 per share payable in full on application. The issue was oversubscribed with the total applications received for 5,200,000 Ordinary Shares. Surplus cash was refunded to the unsuccessful applicants. 3. On 1 December 2018, Queenpharm Bhd. decided to purchase back 5,000,000 of its Ordinary Shares in the open market for RM1.80 each. The directors adopt the Treasury Stock Method to record the share buyback. 4. At the end of December 2018, the Treasury Shares were sold at the open market for a price of RM3.00 each. Required: a) Show the relevant journal entries for the above transactions. (12) b) Prepare the revised Statement of Financial Position immediately after the redemption of the shares. (8) (Total: 20)