Sopan Bhd was incorporated on 1 May 2017. Below is the extract Statement of Financial Position of Sopan Bhd as at 1 May 2019:

Particulars	RM
Bank	850,000
600,0000 4% Preference shares	650,000
850,000 Ordinary shares	1,250,000
Revaluation reserve	180,000
Retained profits	980,000
General reserve	80,000
120,000 5% Redeemable preference shares	126,000

The following transactions took place during the year ended 30 April 2019 and 2020:
(i) On 1 August 2018, 80,000 4% preference shares were issued at share price RM1.20. The shares were fully subscribed and paid.
(ii) On 1 January 2019, the board of directors decided to redeem 70% of the redeemable preference shares at RM1.05. The redemption of the redeemable preference shares was financed partly by issuing 20,000 ordinary shares at RM1.40 per share payable in full upon application. The shares were fully subscribed and paid.
(iii) On 1 May 2019, 150,000 ordinary shares were issued at RM1.50 each. The refund to the unsuccessful applicants was 30,000 units.
(iii) On 30 April 2020, the director decided to declare a two for every ten shares due to the company’s dividend policy at the share price of RM1.20
(v) The current year profit after tax for the year ended 2019 and 2020 was RM450,000 and RM570,000, respectively.

Based on the above transaction, you are required to prepare the following
transaction for the year ended 2019 and 2020:
(a) Journal entries (narrations are not required).
(b) Ledgers for ordinary share account and retained profits account.
(c) Extract Statement of Financial Position as of 30 April 2020. 

Answer rating: 100% (QA)

Sopan Bhd was incorporated on 1 May 2017 Below is the extract Statement of Financial Position of Sopan Bhd as at 1 May 2019 ParticularsRM Bank850000 6000000 4 Preference shares650000 850000 Ordinary s... View the full answer