Reference no: EM132555861

Bina Land Bhd has the following equity balances at 31 December 2018.

                                                                                              RM'000

Share Capital - Ordinary, 22,000,000 shares outstanding                     47,300

Retained Earnings                                                                        283,800

Exchange Translation Reserve                                                           5,350

During 2019, the following transactions occurred:

Date Transactions

20 March Issued 1 million shares at a price of RM2.20 per share. The transaction cost related to the issuance . of shares was RM0.15 per share.

30 September Declared a 2% share dividend to existing shareholders. The share dividend was distributed on the . . same date. The market price of share was RM2.40.

31 December Declared a cash dividend of RM0.50 per share on outstanding shares.

Additional information:

1. Profit for the year 2019 was RM12,000,000.

2. Exchange translation loss recognized during the year 2019 was RM70,000.

Required:

(Round all figures to TWO (2) decimal points)

Question (a) Prepare journal entries to record the above transactions.

Question (b) Prepare the Statement of Changes in Equity for Bina Land Bhd for the year ended 31 December 2019 in accordance with the requirements of MFRS 101 Presentation of Financial Statements.

Question (c) The board of directors of Bina Land Bhd has decided to repurchase the issued shares. The company has surplus cash and intends to distribute to shareholders. The repurchased shares will not be reissued in the future. Propose and briefly explain the appropriate accounting method to record the share repurchase.