QUESTION 1 Carrera Bhd. is a quality bike selling company in Malaysia. Below is an excerpt of shareholders' equity on January 1, 2021. Shareholders' Equity Paid Up Capital Preference Share, 6%, 300,000 units of shares issued and paid Common Stocks, 2,000,000 units of issued and paid shares Jumlah Modal Saham Feb 28 Update preference shareholders' records and ordinary shares for dividend payment purposes. Mac 15 Pay dividends to preference shareholders and ordinary shares. Julai 10 Issued 80,000 units of preference shares, 6% for cash at RM15 per share. Required: The current net profit amounted to RM1,250,000. RM 1. Prepare journal notes for the above share-related transactions and dividends. 3,500,000 2. 10,000,000 13,500,000 3. Show the presentation of the owner's equity share in the Carrera Bhd. Financial Position Statement on December 31, 2021. Discuss TWO differences between preference shares and common stocks. 1. different income: preferred stock income is not affected by the company's operating conditions, while common stock income mainly depends on the company's operating conditions. Retained Earnings Jumlah Ekuiti Pemegang Saham Throughout 2021, the following transactions occurred: Jan 25 Feb 18 Feb 25 4,500,000 18,000,000 Acquiring a building by issuing 100,000 units of preference shares, 6%, at a price of RM15 per share. The building was offered at RM 1,800,000. The Board of Directors declared a cash dividend of RM700,000 to preference shareholders and ordinary shares standing on record until 31 January 2021. All dividends will be paid on March 15. Issued 300,000 units of ordinary shares in cash at a price of RM10 each. 2. different rights: preferred shares usually do not have the right to participate in the company's management decisions, while common shares do. 3. the asset distribution order is different: in the case of bankruptcy liquidation of the company, the preferred shares shall be paid before the common shares. 4. 4. different withdrawal situations: preferred shares and common shares cannot be withdrawn, but preferred shares can be sold back to the company. Ordinary shares can only be realized in the secondary market." Do you agree if it is said that the company's business is more relevant nowadays than a private business or partnership business? State your stance by referring to the advantages or disadvantages of the company's business.