The following liability and equity transactions of GG Bhd. were revealed:

1. Issue of 5% Bond

On 1 January 2019 GG Bhd. issued 5% Bonds of RM150,000. Upon the issuance of the bonds, transaction cost amounting to RM35,000 was incurred. The maturity period of the bonds issued was 3 years. All interests payable by GG Bhd. were paid on 31 December each year. The effective interest rate on the bond was 9%.

2. Issue of Ordinary Shares

On 1 July 2019 GG Bhd. issued additional 10,000 ordinary shares at a price of RM1.50 each, payable in full upon application.

3. Right Issues

On 1 September 2019, GG Bhd. made a right issue on the basis of 1:5 (one for every five) to the existing ordinary shareholders of the company. Market value per share on the date was RM2. The companys total issued shares on 1 January 2019 were 250,000 units of RM1.50 each.

4. Dividend distribution

On 31 December 2019, GG Bhd. proposed a dividend of RM0.20 per share to all of its ordinary shareholders. The proposal is subject the approval in the AGM to be held in March 2020.

Required:

1. Calculate the amount of total dividend proposed for ordinary shareholders.
2. Prepare journal entries to record all relevant transactions in the above for the year 2019 (Narrations are required).

Show the extract of Statement of Profit and Loss and Other comprehensive Income for the year ended 2019 and Statement of Financial Position as at December 31, 2019.