1. Kaya Raya Berhad plans to raise RM4,000,000 capital through a renounceable one-for-five rights issue. The company has in issue, 5 million units of ordinary shares issued at RM2.00. It plans to issue no-par value shares at RM4.00 per share which is currently selling at RM4.80 per share. The rights issue is fully underwritten. Applications for the rights issue are to be received by 15 December 2018. Assume that by that date, applications have been received for 800,000 shares from existing shareholders and parties to whom they had sold their rights. The underwriter has acquired the balance of the rights issue and paid on 16 December 2018. Subsequently, the shares are issued on 31 December 2018.

1a. What are the Journal Entries on 15December 2018, 16 December 2018 and 31 December 2018 ?

1b. on 31 December 2018 how many and what will the total value of the issued and fully paid capital of the ordinary shares ?

10