QUESTION 4 (15 MARKS: 36 MINUTES) A. Identify whether each of the following scenario is an advantage or a disadvantage of the corporate form of business. Justify your answer. 1. 2. 3. 4. 5. 6. Green Company can have many owners in their business. Shareholders of White Company need to pay for corporate tax on dividend earning to tax authority. Yellow Company can buy and sell property based on board of director decision making. The shareholder of Black Company can buy and sell shares without affecting the company operation in daily business operation. Red Company must comply with Malaysian Companies Act 2016. President of Mawar Company can delegate the responsibility and authority for company. B. C. (6 Marks) The accounts and balances that follow are from Comel Bhd's records on 31 December 2020. Items RM Preferred Share, 9 percent cumulative, 2,000 shares issued and outstanding 200,000 Ordinary Share, 16,000 shares issued, and 15,500 shares outstanding Retained Earnings 160,000 30,000 16,000 Treasury Share, Ordinary (500 shares, at cost) REQUIRED: Prepare the shareholders' equity section of Comel Bhd's Statement of Financial Position as at 31 December 2020. (5 Marks) Hayfa Bhd has 50,000 shares, RM50,000 for ordinary share outstanding. Prepare journal entries to record the following transactions as they relate to the company's ordinary share: Date 11 June 30 June 8 August 8 September Transactions Declared a RM0.50 per share cash dividend on ordinary share to be paid on 8 August to shareholders of record on 30 June. Date of record. Paid the cash dividend declared on 11 June. Issued additional 30,000 ordinary shares for RM1.20 per share. (4 Marks)