Broken Hill Ltd’s equity at 30 June 2019 was as follows.

The following events occurred during the year ended 30 June 2020.

Required

(a) Prepare journal entries (in general journal form) to record the above transactions.

(b) Prepare a statement of changes in equity for the year ended 30 June 2020, assuming profit for the year was $36 000.

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200000 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 1200000 180000 10000 (9 700) 60 000 300 000