Additional information - During the year, a bonus issue of 1 share for every 4 held (The par value of the shares outstanding is $1) at 1 January 20X9 followed by a right issue on 5 February 20X9 at $1.2 each. - The company sold a machine with a NBV of $15,000 for $12,000. - A five years loan of $100,000 was raised on December 31, 20X8 with annual interest rate of 6%, and the interest expense has not been charged. Required:

. To make double entries and show its capital structure following: (a) A '1 for 4' bonus issue (b) A rights issue of '1 for 5' at $1.2 following the bonus issue, assuming all rights taken up .

To make double entries for the machine disposed 10.

To make double entries for the loan interest required

To prepare the statement of profit or loss for the year ended 31 December 20X9

3 -A The statement of financial position 20X9 20X8 Asset Fixed assets Inventory Trade debtors Bank and cash 468,564 21,400 21,650 66.540 578 154 256,464 17,890 25,200 60.000 359,554 Liability Trade creditors Interest payable Loan 15,900 1.800 120.000 18,900 600 120.000 139.500 137700 Equity Share capital Share premium Reserve 200,000 230.000 10.454 440.454 578.154 120,000 100.000 54 220.054 359.554 The statement of comprehensive income 20X9 Sales 150.000 Cost of sales 69.000 Gross profit 81.000 Depreciation charge 13,000 Interest cost 7,200 Other operating expenses 47 800 Profit before tax 13.000 Tax 2.600 Profit after tax 10,400