QUESTION 1 a) State TWO (2) differences between Ordinary Shares and Preference Shares. [5 marks] b) Kuchai Development Berhad with a capital of RM1,000,000 in 1,000,000 units made a public offer of 735,000 Ordinary Share according to the following terms: On application On allotment On 1st call On 2nd call RM0.40 RM0.50 RM0.35 RM0.25 On the closing day for applications, applications for 855,000 shares were received and the Board of Directors decided to reject 75,000 unsuccessful shares and the money returned. The balance of application monies was transferred to the allotment account. You are required to demonstrate the journal entries for the transactions above. [5 marks] All monies were duly collected when due except for a shareholder named Bona with 7,500 shares paid the 2nd call at the same time as 1 call; and another shareholder named Boni, who had 3,300 shares but failed to pay the 2nd call money. A resolution was passed; all the shares belongs to Boni were forfeited. You are required to prepare the journal entries to record all the transactions. c) Record the journal entries for the transactions above. [10 marks] d) Illustrate the Extract Statement of Financial Position. [5 marks]