LO8, 9 Bluesky Ltd undertook the following transactions during the financial year ended 30 June 2024. (a) Transferred $5250 from the asset revaluation surplus to retained earnings, from the sale of an item of plant that was measured using the revaluation model. (b) Paid an interim dividend of $65 000. (c) Transferred $60 000 from retained earnings to capital surplus reserve, being a tax-free gain made on the sale of buildings. (d) Used capital reserve of $150 000 to make a 1-for-10 bonus issue. Required Prepare the journal entries in relation to these events.
LO8, 9 Bluesky Ltd undertook the following transactions during the financial year ended 30 June 2024. (a) Transferred $5250 from the asset revaluation surplus to retained earnings, from the sale of an item of plant that was measured using the revaluation model. (b) Paid an interim dividend of $65 000. (c) Transferred $60 000 from retained earnings to capital surplus reserve, being a tax-free gain made on the sale of buildings. (d) Used capital reserve of $150 000 to make a 1-for-10 bonus issue. Required Prepare the journal entries in relation to these events.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please explain.
Transcribed Image Text:your answer.
14.16 Movements in reserves and retainedearnings
LO8, 9
Bluesky Ltd undertook the following transactions during the
financial year ended 30 June 2024.
(a) Transferred $5250 from the asset revaluation surplus to
retained earnings, from the sale of an item of plant that
was measured using the revaluation model.
(b) Paid an interim dividend of $65 000.
(c) Transferred $60 000 from retained earnings to capital
surplus reserve, being a tax-free gain made on the sale
of buildings.
(d) Used capital reserve of $150 000 to make a 1-for-10
bonus issue.
Required
Prepare the journal entries in relation to these events.
of changes
14.17 Sharo
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education