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Prepare the general journal entries required to account for the above transactions and events for the year ending 30 June 2022 (i.e., from 1 July 2021 to 30 June 2022). Narrations are NOT required.

Prepare the general journal entries required to account for the above transactions and events for the year ending 30 June 2022 (i.e., from 1 July 2021 to 30 June 2022). Narrations are NOT required.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PART 1 EQUITY At 30 June 2021, the equity of Bourne Ltd comprised share capital of $29,880,000 (comprising 5,000,000 ordinary shares issued and paid to $6.00 per share, less share issue costs of $120,000), general reserve of $250,000, retained earnings of $2,500,000. The following transactions and events occurred during the year ending 30 June 2022: ● On 6 July 2021 a dividend of $420,000 was paid. This dividend had been declared on 29 March 2021 by the Directors from retained earnings (and had not required any further approval/authorisation). ● On 1 August 2021 the directors made a bonus share issue of 1 ordinary share issued and paid to $6.00 for every 100 shares held. This was made using the total amount in the general reserve, with the remainder from retained earnings. ● On 2 February 2022, the Directors declared and paid an interim dividend of $320,000 from retaining earnings. . On 29 June 2022, the Directors declared a dividend of 8 cents per share from retained earnings. This was not subject to any further approval or authorisation. On 15 July 2022, the Directors were advised that the share price of the company on the securities exchange had increased by $0.70 per share. REQUIRED Prepare the general journal entries required to account for the above transactions and events for the year ending 30 June 2022 (i.e., from 1 July 2021 to 30 June 2022). Narrations are NOT required.
Transcribed Image Text:PART 1 EQUITY At 30 June 2021, the equity of Bourne Ltd comprised share capital of $29,880,000 (comprising 5,000,000 ordinary shares issued and paid to $6.00 per share, less share issue costs of $120,000), general reserve of $250,000, retained earnings of $2,500,000. The following transactions and events occurred during the year ending 30 June 2022: ● On 6 July 2021 a dividend of $420,000 was paid. This dividend had been declared on 29 March 2021 by the Directors from retained earnings (and had not required any further approval/authorisation). ● On 1 August 2021 the directors made a bonus share issue of 1 ordinary share issued and paid to $6.00 for every 100 shares held. This was made using the total amount in the general reserve, with the remainder from retained earnings. ● On 2 February 2022, the Directors declared and paid an interim dividend of $320,000 from retaining earnings. . On 29 June 2022, the Directors declared a dividend of 8 cents per share from retained earnings. This was not subject to any further approval or authorisation. On 15 July 2022, the Directors were advised that the share price of the company on the securities exchange had increased by $0.70 per share. REQUIRED Prepare the general journal entries required to account for the above transactions and events for the year ending 30 June 2022 (i.e., from 1 July 2021 to 30 June 2022). Narrations are NOT required.
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