Keranji Tegar Bhd (KTB), an oil and gas company has 6,000,000 ordinary shares with market value of RM2.55 per share as at 1 January 2020. On that date the equity section also showed RM250,000,000 retained earnings balance and RM3,000,000 revaluation reserve balance.

The following transactions related to KTB during the year 2020:

1. On 11 January 2020, the company issued 250,000 ordinary shares at RM2.40 each payable in full on application. Actual applications for 400,000 ordinary shares were received. Balloting was carried to select the successful applicants and cash received from unsuccessful applicants were returned on 28 February 2020. Other cost paid were RM2,800 for underwriters' fees, RM4,000 for legal fees and RM400 for printing.

2. On 30 September 2020, the company declared a 2% share dividend to existing shareholders. The share dividend was distributed on the same date. The market price of share was RM2.60.

3. On 31 December 2020, the company declared cash dividend of RM0.04 per share to its shareholders.

Additional information:

1. Profit for the year 2020 was RM23,000,000.

2. For the year ended 2020, the companys properties were revalued which resulted in a gain of RM800,000.

Assume that the approval from all the relevant authorities has been obtained and complied with for the above transactions.

REQUIRED:

(Round all figures to the nearest RM)

1. Prepare the appropriate journal entries to record the above transactions.
2. Prepare the Statement of Changes in Equity for Keranji Tegar Bhd for the year ended 31 December 2020.

c Explain the definition of treasury share based on Companies Act 2016.

d The amendment of Section 67A Companies Act 2016 allows a public company to purchase its own shares. Explain the pre-requisite conditions that must be met for share repurchase.