4 (25 Marks) a) The equity accounts of Mandevilla Bhd. on January 1, 2021, were as follows. RM Share Capital Preference (9%, RM50 par, cumulative, 10,000 shares authorized) 400,000 Share Capital Ordinary (RMI stated value, 2,000,000 shares authorized) 1,000,000 Share Premium-Preference Share Premium-Ordinary Retained Earnings Treasury Shares-Ordinary (20,000 shares) 100,000 1,450,000 1,816,00 50,000 During 2021, the corporation had the following transactions and events pertaining to its equity. Feb 1 The company issued 30,000 ordinary shares for RM120,000. Apr 14 Sept 3 The company sold 9,000 treasury shares ordinary for RM42,000. The company issued 7,000 ordinary shares for a patent valued at RM32,000. Nov 10 Dec 31 The company purchased 1,000 ordinary shares for the treasury at a cost of RM6,000. Determined that net income for the year was RM452,000. No dividends were declared during the year. Required: i. Journalize the transactions and the closing entry for net income. [13 marks] ii. Prepare an equity section at December 31, 2021, including the disclosure of the preference dividends in arrears. [7 marks] b) The following section is taken from Nolana Sdn Bhd's statement of financial position at December 31, 2020. Current liabilities RM Interest Payable 180,000 Non-current liabilities Bonds Payable, 9%, due January 1, 2025 4,000,000 Interest is payable semi-annually on January 1 and July 1. The bonds are callable on any interest date. Required: i. Journalize the payment of the bond interest on January 1, 2021. [2 marks] ii. Assume that on January 1, 2021, after paying interest, Nolana Sdn Bhd calls bonds having a face value of RM1,600,000. The call price is 104. Record the redemption of the bonds. [3 marks]