Terlajak Laku Bhds statement of financial position as at 31 December 2015, shows the following shareholders equity information:

	RM	RM
Issued and fully paid:
7,000,000 Ordinary shares @ RM3	21,000,000
2,000,000 10% Preferences shares @ RM1	2,000,000	23,000,000
Reserve:
Share premium account	6,000,000
Retained earnings	6,500,000	12,500,000
Total shareholders equity		35,500,000

On 1 June 2015, the company made a bonus issue of one share for every ten ordinary shares held as at that date. The bonus issue is to be made out of the retained earnings account and utilises the share premium if not enough. At 31 December 2015, Terlajak Laku Bhd has purchased a total of 1,000,000 of ordinary shares at RM3.00 per share.

Instructions

1 Show the journal entry to record the bonus issue and share buy-back transactions (all shares purchased were retained as treasury shares).

2 Prepare the Statement of Financial Position extracts for after the above transactions had been made.