QUESTION 2 Calm Bhd (formerly known as Calm Sdn Bhd) made an initial public offering of 500,000 units of ordinary shares to the public at a price of RM1.20 each and payable as follows: On application On allotment On first and final call RM0.50 RM0.40 RM0.30 Applications were received for 800,000 units of shares and the directors decided to deal with it as follows: i. ii. to reject 50,000 units of shares from applicants by refunding their application monies; and to allot remainder of shares on a pro rata basis. All shareholders have paid the monies on due date except in a case of one shareholder with 1,000 ordinary shares who failed to pay call money. After repeated notices given to the shareholder, the directors decided to forfeit the shares. At subsequent date, the forfeited shares were reissued as fully paid shares at RM0.40 each. The reissued shares were fully subscribed and paid for. Required: (a) Briefly explain TWO (2) differences between private limited company and public limited company. (b) (c) Prepare journal entries to record the above transactions. Prepare an extracted statement of financial position: after the forfeiture of shares. i. ii. after the reissuance of the forfeited shares.