B The following is an extract of China Limited's balance sheet at 31 December, 2018 Net Assets Paid-up capital, 300,000 ordinary shares at $2 each Retained earnings S1,500,000 600,000 900,000 Required The directors propose to make a 2-for-5 bonus issue to the shareholders and decide to transfer $500,000 of its retained earnings to paid-up capital Prepare the journal entries to record the transaction (narrative is NOT required) a (2 marks) b If the directors decide to make a bonus issue without increasing the paid-up capital, advise on the following after the bonus issue i the balance of paid-up capital ii the total number of issued ordinary shares iii the balance of retained earnings (1 mark) (1 mark) (1 mark) What are the components of a financial statement according to HKSA1 Presentation of financial statement? c