Question 2 As at 31 December 20X0, the shareholders' equity of Modern Pte Ltd comprised 4,400,000 issued and outstanding ordinary shares at book value of $3,080,000, and retained earnings of $910,000. The company's financial year end is 31 December. During 20X1, the following events took place: (i) On 1 April 20X1, for the first time since the company started, Modern Pte Ltd bought back 120,000 of its own shares for cash at the market price of $0.80 per share. (ii) On 1 May 20X1, at the annual general meeting, the company's shareholders approved and the company declared cash dividend at $0.07 per share. (iii) The cash dividend declared in (ii) was distributed in cash to shareholders on 15 June 20X1. (iv) On 1 November 20X1, Modern Pte Ltd reissued 50,000 of its treasury shares at the market price of $0.85 per share. (v) Modern Pte Ltd owned shares in Covi Ltd, which was measured as a fair value through profit or loss investment under FRS 109 Financial Instruments. The carrying amount of this investment was $70,000 and the fair value was $72,000 on 31 December 20X1. Question 2a Show the accounting effects of Events (i) to (v) by preparing the necessary journal entries that Modern Pte Ltd should record. Include dates but exclude journal narratives. Please state assumptions made, if any. Please show all workings clearly to get full credit. Question 2b Present the Statement of Changes in Equity for Modern Pte Ltd for the year ended 31 December 20X1. Clearly show the movements in the share capital, retained earnings, treasury shares and any other relevant categories in the statement. Assume that the net profit and other comprehensive income for the year ended 31 December 20X1 are $989,000 and $0 respectively, before accounting for Events (i) to (v).