Question 1 The shareholders' equity section of Roughy Ltd's balance sheet as at 30 June 2019...

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Question 1 The shareholders' equity section of Roughy Ltd's balance sheet as at 30 June 2019 was as follows: Shareholders' Equity Share Capital - Ordinary (500,000 shares, fully paid) Retained Earnings $500,000 $1,240,000 $740,000 The following shareholders' equity and taxation transactions occurred during the 30 June 2020: Reserves year ended On 1 January, Directors issued 500,000 ordinary shares in exchange for land and buildings. Fair value of the land buildings was $625,000 and the market value of the shares was $600,000. On 5 January a $0.20 interim dividend per share was declared on the ordinary shares. On 6 February the ordinary interim dividend was paid in cash. On 30 June the company's income tax expense was estimated to be $75,600 and profit before tax was $300,000. On 30 June the company transferred $50,000 from retained earnings to Reserves. On 30 June Directors declared a $0.30 ordinary dividend. Required: Prepare the journal entries to record the above transactions and events. Question 1 The shareholders' equity section of Roughy Ltd's balance sheet as at 30 June 2019 was as follows: Shareholders' Equity Share Capital - Ordinary (500,000 shares, fully paid) Retained Earnings $500,000 $1,240,000 $740,000 The following shareholders' equity and taxation transactions occurred during the 30 June 2020: Reserves year ended On 1 January, Directors issued 500,000 ordinary shares in exchange for land and buildings. Fair value of the land buildings was $625,000 and the market value of the shares was $600,000. On 5 January a $0.20 interim dividend per share was declared on the ordinary shares. On 6 February the ordinary interim dividend was paid in cash. On 30 June the company's income tax expense was estimated to be $75,600 and profit before tax was $300,000. On 30 June the company transferred $50,000 from retained earnings to Reserves. On 30 June Directors declared a $0.30 ordinary dividend. Required: Prepare the journal entries to record the above transactions and events.

Answer rating: 100% (QA)

1 1 January Land and Buildings 625000 Share Capital Ordinary 600000 Reserves 25000 To re... View the full answer