The following is the Statement of Financial Position of NKR Continental Berhad as at 31 December 2020. RM Issued and fully paid capital: 3,000,000 Ordinary shares 1,500,000 5% Preference shares Reserves: Retained Profit 3,000,000 1,500,000 270,000 Non-Current Liabilities: 8% Loan 80,000 4,850,000 Represented by: Non-Current Assets 2,000,000 Net Current Assets (except bank) 900,000 Cash at bank 1.950,000 4,850,000 Additional information: 1. At the end of the financial year, the company had also decided to make a bonus issue of two (2) ordinary shares for every fifty (50) ordinary shares to the existing shareholders. 2. The directors of NKR Continental Berhad had decided to issue: - 500,000 units of ordinary shares at RM1.20. The shares were oversubscribed by 250,000 units. - 200,000 units of 5% preference shares at an issue price of RMI. The shares were 100% oversubscribed. 3. All shares were paid in full on application. Required: a. Record all of the above information into the journal. (17 marks) b. Prepare an extract of the Statement of Financial Position to take the effect of the above transactions (14 marks) Holders of preference shares are entitled to a dividend each year. Discuss