Al Qurrayat Steel Products Company SAOG (the Parent Company) is an Omani public joint stock company registered with the Ministry of Commerce and Industry in accordance with the requirements of the Commercial Companies Law 1994, as amended, of the Sultanate of Oman. The Companys shares are listed in the Muscat Securities Market. The principal activities of the Parent Company are manufacturing and sale of steel products including associated works. The Parent Company operates two plants namely tube mill and merchant bar mill. The commercial operations of the tube mill commenced in May 1999 and the merchant bar mill commenced in October 2009. During the year 2019, the Parent Company also added a new facility to manufacture rebar products in the existing merchant bar mill. 2019 probably saw the lowest growth rate after those in the years post the financial crisis of 2008. GCC economies grew only at 0.8% (as per World Bank estimates), with construction suffering the brunt of the slow down or lack of adequate growth. Also, trade war-like scenarios between US & China and uncertainties relating to Brexit, contributed to very sluggish steel demand worldwide and in the GCC as investors were consistently in a wait and watch mode through the year. Al Qurrayat Steel products have registered with RO 376,000,000 shares of RO 0.100 each and issued and paid capital of the company were 225,668,158 shares. The company decided to issue rights shares of 19.7 shares for every 100 shares help in the company. The offer is not fully taken by the shareholders out of which 65% accepted the right offer. Bonus shares reduce the earning per share of the shareholders instead it increases the number of the shares to the existing lot. The market price of the shares were RO 0.352 baize and the issue price for the rights shares were determined as RO 0.272 baize per share. It is decided by the company that the refunds if any would be made within fifteen days of the rights issue. The company had profit capital reserves amounting to RO 100100, Profit on sale of fixed assets was RO 998850, general reserve was RO 428158, retained earnings was RO 2125125 and legal reserves of RO 3775658. The company decided to issue bonus shares to its shareholders and the company may issue bonus shares out of free reserves accumulated out of genuine profits or share premium collected. Reserves created by revaluation of fixed assets are not available for issue of bonus shares. Each shareholder will be eligible for 1 share for every 80 shares held. The bonus may be applied to convert partly paid shares into fully paid shares or may be issued as fully paid up bonus shares if any. You are required: In your own words highlight the procedures briefly to issue bonus shares, rights shares and stock splits as per the commercial company law. (3 marks) Pass necessary journal entries for the rights and bonus taking place in the given scenario. (4 marks) Prepare necessary abstract to represent such transactions in SOFP.