Company Y has 3 million ordinary shares in issue with a carrying value of RM5 million. On 1 June 2020, the company, in wanting to raise funds needed to expand its business, issued 2 million ordinary shares at RM1.4 per share. Subscriptions for 2.5 million shares were received on 6 June 2020. On 10 June 2020, the applied shares were accordingly allotted and refunds made for unsuccessful applications.  

Required:

a. Prepare journal entries for the (i) issue of shares and (ii) allotment of shares and (iii) refund for unsuccessful applications. (Narrations not required)

b. Prepare an extract of the statement of financial position, to show the presentation of Company Y’s equity at reporting date 30 June 2020.