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Below is a partial Statement of Financial Position of Malika Bhd as at 31 December 2019: Malika Bhd Partial Statement of Financial Position As at
Below is a partial Statement of Financial Position of Malika Bhd as at 31 December 2019: Malika Bhd Partial Statement of Financial Position As at 31 December 2019 RM 000 Equity: Contributed share capital 50,000 Retained earnings 25,000 Total equity 75,000 As at 31 December 2019, Malika Bhd had 5,000,000 shares outstanding. During 2020, the following transactions took place: i. 1,000,000 shares were issued at RM15 per share on 1 February 2020. Share issue expense was RM100,000. ii. A cash dividend of RM1 per share on its outstanding shares was declared on 15 July 2020. The dividend was paid on 15 August 2020. 111. Net income after tax in 2020 was RM3,600,000. iv. Other comprehensive income after tax in 2020 was RM40.000. REQUIRED: (a) Prepare journal entries for the issuance of shares and for the dividend declaration. Prepare the Statement of Changes in Equity for the year ended 31 December 2020. (b)
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