Question

The following selected balances are taken from the general ledger of Get Real Ltd at 30 June 2011:

      $

Share Capital (100 000 ordinary shares)                          200 000

General Reserve                                                              180 000

Retained Profits                                                               391 000

Final Dividend Payable                                                      10 000

 

The following selected transactions took place during the financial year ended 30 June 2012.

01 Aug            Paid the final dividend declared at the end of the previous financial year.

      Declared and immediately issued a 1 for 5 bonus share issue, valued at $1.00 per share and issued from the general reserve.

01 Sept            Transferred $45 000 to the general reserve from the retained profits account.

01 Oct             Get Real Ltd issued a prospectus offering 200 000 shares at $2.50 per share, all payable at the time of application.

01 Nov            $650,000 received in relation to the share offer. The directors issued the 200 000 shares on a ‘first-come first-serve’ basis.

01 Dec             The directors refunded the balance due to unsuccessful applicants.

30 June            A final cash dividend of 10 cents per share was declared, payable on all shares issued by the company as at 30 June 2012.

                        After adjusting and closing entries, the credit balance in the profit and loss summary was $84 000. This amount represents the final profit after taxation.

Required

Prepare the necessary entries, in general journal form (as follows), to record these events for the year ended 30 June 2012. Also prepare all closing entries that are needed. No narrations are required.