DOREMI BHD Extract Statement of Financial Position as at 30 September 2020 RM Issued and paid-up capital 1,125,000 Ordinary shares 1,350,000 120,000 8% Preference shares 120,000 Reserves Retained earnings 57,250 Non-current liabilities 5% Debentures 100,000 For the financial year ending 30 September 2021, the company has decided to raise additional capital using the following financial arrangements: 1. To issue 1,000,000 ordinary share at RM1.50 each and to be paid in full upon application. On 1 October 2020, the application received by the company were oversubscribed by 500,000 units. The excess monies were returned to the unsuccessful applicants. 2. To issue 500,000 8% preference shares. On 1 December 2020, 450,000 applications were received and the amount were paid in full. 3. On 1 January 2021, the company made a right issue to its existing shareholders on the basis of one for every five shares held as at 30 September 2020 at a price of RM0.80 per share. 4. To issue additional 5% Debenture with a face value of RM500,000 at a premium of 2% on 1 February 2021. Transaction costs incurred upon issuance was RM15,000. The debenture is estimated to mature in 20 years and will be redeemed at the effective interest rate of 10%. The debenture is carried at amortized cost. (Show all workings and round up the calculation to the nearest RM) Required: a. Show the journal entries to record the above transactions. (18 marks)