A corporation is a legal business structure involving one or more individuals (owners) who are legally distinct (separate) from the business that is created under state laws. The owners of a...

A corporation is a legal business structure involving one or more individuals (owners) who are legally distinct (separate) from the business that is created under state laws. The owners of a corporation are called stockholders (or shareholders) and may or may not be employees of the corporation. Assuming that a business has been established successfully and operating for the past 5 years in Oman. The president, who is one of the shareholders, has created an innovative new product that is testing well with substantial demand. To begin manufacturing, OMR 1 Million additional capital is needed to acquire the equipment and expand the business. Assuming that the company came up with IPO by issuing 1 million shares at 20% premium. (Par value of shares OMR 1 each). The public subscribed all the shares and received all the money. Later the market value of share was OMR 2.500 per share. The company decided to offers a rights issue of 3 for 6 shares at an offer price of OMR 1.500. 90% of the offer was taken by the shareholders. After issuing a right shares, the company also decided to make a bonus issue in the ratio of 2 for 4 shares held. Existing Structure of the company at the end of 31st December 2020 (before new issue, right and bonus shares) Non current assets Property Plant and Equipment Investments in an associate Current Assets Cash Bank Muscat Inventories Accounts receivable Required: OMR 5 Million 1 million 300,000 3,000,000 500,000 200,000 Equity and Liabilities Equity Share capital Share Premium General reserve Capital reserve Retained earnings Non-Current liability Current Liability (total) OMR 4 million 2 million 1 million 500,000 500,000 NIL 2,000,000 1. Give the he Journal entry for New issue, right issue and bonus issue. 2. Prepare a statement of financial position after the above changes