The following is the information extracted from the accounting records of Rainbow Bhd as at 1 January 2021:

RM

Preference Share, 5%

Issued and fully paid, 35,000 unit 700,000

Ordinary Share

Issued and fully paid, 100,000 unit 100,000

Retained Earnings 1,105,000

During 2021, the following transactions occurred:

13 Mac Issued 30,000 unit ordinary shares at price RM1.50 per unit

25 June Issued 25,000 unit preference shares, 5% to acquire a land. The market price of the preference share on the date of issuance was RM12 per share. The market value of the land was estimated around RM285,000.

30 Nov Board of Directors declared the cash dividend RM500,000 to all preference and ordinary shareholders.

1 Dec Updates the shareholders record.

15 Dec Paid the cash dividend.

Net income of the Rainbow Bhd for the year ended 31 December 2021 is RM200,000.

Required:

1. Show the journal entry to record all the above transactions.
2. Show the Shareholders equity part in the Statement of Financial Position as at 31 December 2021.