Macpie Prima Bhd. (MPB) was formed on 1 July 2000. The following data were taken from the Statement of Financial Position of MPB on 30 June 2018.

RM

Share capital Ordinary 150,000,000 shares outstanding 277,500,000

Retained earnings 98,523,150

Fair value reserve 255,000

During the financial year 2019, the following transactions took place:

1. 120,000 ordinary shares were issued for cash on 15 August 2018 at RM2.30 per share. Transaction costs incurred were as follows:

1. Legal fees RM10,500
2. Underwriters fees RM 8,200

2. MPB has followed a schedule of declaring cash dividends in December and June with payment being made to shareholders of record in the following month. The cash dividends declared since 2018 were shown below:

Declaration Date	Dividend
15 June 2018	3 sen per share
15 December 2018	2 sen per share
15 June 2019	-

No cash dividends were declared during June 2019 due to the companys liquidity problem.

3. During the financial year 2019, fair value reserve decreased by RM47,000 due to the weaker stock market performance.

4. Profit for the financial year 2019 was RM6,523,000.

REQUIRED:

1. Prepare journal entries to record the issuance of shares and dividend payments in the financial year 2019.

2. Prepare the Statement of Changes in Equity for MPB for the year ended 30 June 2019 in accordance with the requirements of MFRS 101 Presentation of Financial Statements.

3. The directors of MPB decided not to declare the cash dividends in June 2019 due to the liquidity problem. Suggest to the directors of MPB an alternative method to provide returns to the shareholders.

(d) Share retirement method and treasury share method are two alternative methods of accounting for share buybacks allowed under the Malaysian Companies Act 2016. Briefly explain the accounting treatment for share buybacks under treasury share method.