QUESTION 1 (20 MARKS) The Equity section, Statement of Financial Position of RAMA Bhd. On January 1, 2020, is as follows: RM Equity Shares Issued and fully-paid Capital 50,000 unit 5% Cumulative Prfrence Share 5% 1,000,000 250,000 unit Equity Share 2,000,000 3,000,000 3,500,000 6,500,000 Total Share Capital Retained earnings Total Equity The followings are equity-related transactions throughout 2020: Jan 20 Issued 50,000 units of equity shares for cash at RM9 per share. Feb 15 Make Made a split share split for 1:2. March 25 Issued 70,000 units of 5% cumulative preference shares for acquiring a building. The price of the building in the market was RM1,500,000. Apr 20 May 20 Issued 15,000 units of 5% cumulative preference shares for cash at RM25 per share. Issued 20,000 units of equity shares to acquire a piece of land. The offer price of the land was RM120,000. The market value of equity shares on this date was RM5 per share. June 15 The Board of Directors declares declared a cash dividend of RM500,000 to all shareholders as per the record on 1 June 2020. A review of the records shows that no dividend was declared in 2019. July 10 The Board of Directors declared a 5% share dividend to equity shareholders as recorded on 1 June 2020. At this date, the equity share price is RM6 per share. Sept 30 Updating Updated the record of preference shareholders and equity shareholders for dividend payment purpose. Nov 30 Pay-Paid the cash dividend that was declared on June 15 and make the distributed the share dividend declared on July 10. Dis 31 Net profit for 2020 was RM580,000. Required: a) Prepare journal entries for transactions throughout 2020 (ignore narrations). (10 marks) b) Determine the distribution of cash dividends to preferred shareholders and equity shares. (3 marks) EPPD1033 1 c) Show the owner's equity share section in the Financial Position Statement of RAMA Bhd on 31 December 2020. (7 marks)