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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education