c. Assuming the entity made a rights issue instead of the bonus issue at a discounted price of 90% of market value, prepare the relevant journal entry. d. On the basis of the rights issue above, reconstruct the entity's equity structure. 4. Phillips Limited has share capital of $100 million at January 1,2020 , which represented 10 million shares. The entity's retained earnings stood at $25 million and revaluation reserves of $75 million as at December 31, 2020. In addition to the above, the company had trade payable, building, inventory and cash of \$50 million, \$200 million, \$30 million and \$20 million respectively. On December 30, 2020, the directors declared a four for five bonus issue, which was followed by a rights issue of one for ten shares at $12 per share. Required: a. Prepare the entity's statement of financial position as at December 31, 2020 before the issue of any new shares. b. Prepare the statement of financial position as at December 31,2020 after the issues declared by the entity's directors. 5. XYZ Limited was incorporated on January 4, 1985. The entity's reporting date is December 31st of each year. On the date of incorporation, the entity issued 100,000,000 ordinary shares with a par value of $0.50 each. Since the date of incorporation the entity's share capital remains the same. However, on December 30, 2019 the entity made a 1 for 2 bonus issue after which it immediately made a 2 for 5 rights issue for $1.20 each. After the rights issue the entity declared dividends of $0.10 per share on December 31, 2019. Immediately before the issue the entity had the following balances: Required: a. Draft the statement of financial position before the bonus and rights issue. b. Prepare the relevant journal entries for the bonus and rights issue c. Prepare the relevant journal entry for the declaration of dividends d. Re-draft the statement of financial position as at December 31, 2019