QUESTION Lemonade Bhd , a manufacturing company was incorporated two years ago. The following is the statement of financial position of the company as at 31 December 2018. Lemonade Bhd Statement of financial position as at 31 December 2018 RM Issued and paid up capital 5,000,000 Ordinary shares 10,000,000 1,000,000 7% Preference Shares 5,000,000 + Reserves Retained earnings 10,767,000 Non Current Liabilities 5% Debenture 10,000,000 Current Liabilities Account payable 573,000 36,340,000 Financed by: Non current asset Investment 34,343,000 850,000 Current Assets Inventory Account receivables Bank 250,000 657,000 240,000 36,340,000 During the year ended, the company resolved the following matters 1. Bonus issue of one ordinary shares for every ten-share held were given to the shareholder. 2. On 1st February the company issued 30,000,000 Ordinary shares at RM1.80. The application received were oversubscribed by 5,000,000 units. The applications monies in respect of the unsuccessful applications were returned to the applicants. 3. The company also issued additional 2,000,000 unit of 7% Preference shares at RM 4 each. The shares undersubscribed by half. 4. On 1st April 2019, 8% Debentures RM500,000 were issued. The effective interest rate is 9% and the issuance cost incurred is RM10,000. The company decided to use amortised cost method in recognising the debentures. 5. Investment costing RM600, 000 was sold at a gain of RM15,000. Required: a) Show journal entries to record the above transactions. (20 marks) b) Prepare updated statement of financial position as at 31 December 2019. (5 marks) (25 marks)