Question $3$

Safawi Bhd was formed on $1$ July $2021.$ Safawi Berhad has a $1$ July $-30$ June fiscal year. Th following information relates to the equity accounts of Safawi Berhad.

Ordinary Shares

Prior to the $2023-2024$ fiscal year, Safawi Berhad had $110,000$ shares of outstanding ofdinary shares issued as follows.

a$)95,000$ shares were issued for cash on $1$ July $2021,$ at RM$31$ per share.

b$)$ On $24$ July $2021,5,000$ shares were exchanged for a plot of land which cost the seller RM$70,000$ in $2015$ and had an estimated fair value of RM$220,000$ on $24$ July $2021.$

c$)10,000$ shares were issued on $1$ March $2023,$ for RM$42$ per share.

During the $2023-2024$ fiscal year, the following transactions regarding ordinary shares took place.

$\backslash$table$[[\frac{30}{11}\frac{?}{2023},\backslash$table$[[$Safawi Bhd purchased $2,000$ of its own shares on the open market at RM$39],[$per share.$]]],[\frac{15}{12}\frac{?}{2023},\backslash$table$[[$Safawi Bhd declared a $5\%$ share dividend for shareholders of record on $15],[$January $2024,$ to be issued on $31$ January $2024.$ Safawi Bhd was having a$],[$liquidity problem and could not afford a cash dividend at the time. Safawi$],[$Bhd$\text{'}$s ordinary shares were selling at RM$52$ per share on $15$ December$],[2023.]]]]$

Preference Shares

Safawi Bhd issued $100,000$ cumblative and non$-$redeemable preference shares at RM$44$ per share on $1$ July $2022.$

Cash Dividends

Safawi Bhd generally declares cash dividends in December and June, with payment being made to shareholders of record in the following month. The cash dividends which have been declared since inception of the company through $30$ June $2024,$ are shown below.

$\backslash$table$[[$Declaration Date,Ordinary Shares,Preference Shares$],[\frac{15}{12}\frac{?}{2022},$RM$0\mathrm{.}30$ per share,RM$0\mathrm{.}50$ per share$],[\frac{15}{06}\frac{?}{2023},$RM$0\mathrm{.}30$ per share,RM$0\mathrm{.}50$ per share$],[\frac{15}{12}\frac{?}{2023},-,$RM$0\mathrm{.}50$ per share$]]$

No cash dividends were declared during June $2024$ due to the company's liquidity problems. Rotained Earnings

As of $30$ June $2023.$ Safawi Bhd$\text{'}$s retained earnings account had a balance of RM$550,000.$ For the fiscal year ending $30$ June $2024,$ Safawi Bhd reported net income of RM$120,000.$

Requirement

Prepare the equity section of the statement of financial position, including appropriate notes. for Safawi Bhd as of $30$ June $2024,$ as it should appear in its annual report to the shareholders.