The extract from the statement of financial position of Nemo Bhd as at $31$ December $8$ is given below.

Nemo Bhd

Statement of Financial Position as at $31$ December x$8($Extract$)$

Equity and reserves

Issued and fully paid$-$up capital

$30,000,000$ ordinary shares, fully paid up

Retained profits

Due to the liquidity problem faced by the company, the directors decided to give to the shareholders share dividend

of one ordinary share for every ten ordinary shares held and the retained profit was to be used for this purpose.

At the same time, Nemo made a rights issue of $1,000,000$ shares to the existing shareholders at RM$2$ each. The

market price of the share was RM$3$ each.

Required:

Show the journal entries to record the transactions and prepare the statement of financial position after the

completion of the transaction.