QUESTION $2$

Required:

Journalise the transactions given below:

On $1$ January $2022,$ Canada Ltd had the following equity accounts:

Share capital $$ Ordinary $($$$30$ PV$,$ issued and outstanding $50000)$

Share premium $$ Ordinary

Retained Earnings $1500000$

$250000$

$600000$

During the year the following transactions occurred:

$1$ Feb Declared a $$1\mathrm{.}00$ cash dividend per share to shareholders of record on $15$ February, payable on $1$ March.

$1$ March Paid the dividends declared in February.

$1$ April Announced a $5-$for$-1$ share split. Prior to the split, the market price per share was $$35.$

$1$ July Declared a $10\%$ share dividend to shareholders of record on $15$ July, distributable $31$ July.

On $1$ July, the market price per share was $$8.$

$31$ July Issued the shares for the share dividend.

$31$ Dec Declared a $$0\mathrm{.}50$ per share dividend to shareholders of record on $15$ December, payable $5$ January $2021.$

$31$ Dec Determined that the net income for the year was $$350000.$