Broken Hill Ltd’s equity at 30 June 2025 was as follows.

The following events occurred during the year ended 30 June 2026.

Required A. Prepare journal entries (in general journal form) to record the transactions.
B. Prepare a statement of changes in equity for the year ended 30 June 2026, assuming profit for the year was $36 000.

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200 000 ordinary shares, issued at $3.20, fully paid 500 000 ordinary shares, issued at $3.40, called to $2.40 180 000 redeemable preference shares, issued at $1, fully paid Calls in advance (10000 ordinary shares) Share issue costs General reserve Retained earnings $ 640000 1 200 000 180000 10000 (9 700) 60000 300 000