QUESTION 5 On 31/12/2020, the extracted statement of financial position of Unity Bhd disclosed: an issued and paid-up capital of 500,000 5% preference shares of RM1.00 each: 2,500,000 ordinary shares of RM2.00 each; retained profits of RM1,232,000, and total assets of RM6,732,000 of which RM2,000,000 related to cash at bank. In January 2021, the company decided to offer and issue 2,500,000 ordinary shares which will be paid in several stages. A total of 3,200,000 shares received on the closing date of application at RM0.60 per share. 3 The board of directors decided to reject 200,000 shares applications and refund the application money to the unsuccessful applicants. The surplus money on application will be transferred to the allotment account In April 2021, all monies were duly collected at RM0.70 per share for allotment stage. During 1" call, all shareholders paid RM0.70 per share except for Norman, a shareholder with 100,000 shares, who made the 2nd call payment during the 1" call. Payment for 2nd stage at RM0.30 per share duly received when due except for Emmy, another shareholder with 30,000 shares, who failed to pay the 2nd call money. A resolution was passed to forfeit the 30,000 shares that belongs to Emmy. In May 2021, the 30,000 forfeited shares were reissued as fully paid shares to Bernard at RM0.90 each. In July 2021, Unity Bhd made a rights issue of one ordinary share for every four ordinary shares held. The offer price and market price of its share were RM2.35 and RM2.70 respectively. All shares offered under rights issue were taken up and fully paid upon application In August 2021, the company also made a scrip issue of one preference share for every twenty preference shares held by utilising the amount available in retained profits. Required: (a) Briefly explain right issue and scrip issue. (b) Prepare the journal entries to record all of the above transactions (ignore narrations) (c) Illustrate the statement of financial position (extracted) after the reissuance of the forfeited shares. (d) Illustrate the statement of financial position (extracted) after issuance of rights issue and serip issue