The following is the equity of Bowral Ltd at 30 June 2016:

            Share capital (200000 fully paid ordinary shares)     $400000

            General reserve                                                                     200000

            Retained earnings                                                       10000

The transactions below occurred during the year ended 30 June 2017:

2016

July    1 July    31 Aug.     1 Sept.   22

Prospectus issued inviting offers for 200000 shares to be issued for $3 per share. These shares were offered to existing shareholders on the  basis of 1 share for every 2 shares at present held. Shares were payable in full on application and rights to the issue were transferable. The  prospectus provided that these shares were to rank equally with existing shares from 1 July 2016. The issue was underwritten for a commission  of $5000. In addition, 200000 shares were privately placed with QLM Insurance Ltd at $2.80 per share, and these shares were to rank for dividend purposes from 1 October 2016. The issue closed fully subscribed, the holders of 40000 shares having transferred their rights. Directors proceeded to allotment. Underwriting commission paid. At the annual general meeting, shareholders approved a final dividend of 15c per share for the year ended 30 June 2016. The dividend had not  been recorded in the accounts for the year ended 30 June 2016. Dividends were paid by direct debit to shareholders after the close of the  meeting. Dividends were paid from General Reserve.

Required

A.    Prepare entries in general journal format to record the above transactions.

B.    Prepare a statement of changes in equity for the period 1 July to 30 September 2016.