The following are the extract of Statement of Financial Position as at 31 December 2020 for Harapan Tinggi Berhad. Harapan Tinggi Berhad Statement of Financial Position (Extract) at 31 December 2020 RM Authorised Capital 7,000,000 Issued & Paid up Capital 2,000,000 8% preference shares of RM1.00 each fully paid 5,000,000 ordinary shares of RM1.00 each fully paid 2,000,000 5,000,000 7,000,000 The directors, having obtained all the approvals necessary, proceed to the following capital reduction: i. Reduce all preference shares to a par value of RM0.80 and return RM0.20 per share. ii. Reduce all ordinary shares to a par value of RM0.60 and return RM0.40 per share. Required: a. Prepare the journal entries to record the capital reduction. b. Prepare the Statement of Financial Position (extract) of Harapan Tinggi Berhad immediately after the capital reduction