The following information relating to the year ending 30 June 2020 for Penrith Ltd has been obtained from the company’s records.

On 30 June 2020, the directors decided to:
1. recommend a final cash dividend of $7000, to be ratified by shareholders at the annual general meeting 

2. write off development costs 

3. increase the general reserve by $1000 

4. provide for an estimated tax expense and current tax liability of $7500 on 2019–20 profits.

Required

Record the above adjustments in ledger accounts and prepare a statement of changes in equity for Penrith Ltd for the year ended 30 June 2020.

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Profit for year before further adjustments and tax Retained earnings (1 July 2019) General reserve Revaluation surplus Interim dividend paid Development costs $33 000 5500 3000 2500 5000 3500