Groot Ltd. was a new company formed on the 1 January 2018. The following events occurred in
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Groot Ltd. was a new company formed on the 1 January 2018. The following events occurred in 2018:
The company issued 250,000 ordinary shares at 80 cents each on 1 January 2018. The company was extremely successful in its first few months and an interim dividend of 5 cents per share was declared and paid on 29 March 2018. A final dividend of 10 cents per share for the financial year ending 30 June 2018 was paid on 2 August 2018. This dividend had been declared on 30 June 2018. An increase of $100,000 in the general reserve was made on the same date. Profit before income tax for the year ended 30 June 2018 was $725,400 and the company tax rate is 30%.
Prepare general journal entries to record all the above transactions and events.
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