The following data relates to ABC Ltd:
- Profit for the year ended 30 June 20X1, $500,000.
- On 31 March 20X1, the directors decided to pay an interim cash dividend of $100,000.
- On 7 April 20X1, the interim dividend was paid.
- For final dividends, the company’s constitution provides that the directors can recommend a dividend to be subsequently declared by a resolution of the members in a general meeting.
- The directors recommended a final dividend of $250,000 to be paid.
- The shareholders accepted the final dividend at the annual general meeting, and payment was made on 14 September 20X1.
- Prepare journal entries to record the above dividend payments.
- Prepare the retained profits general ledger account.
Adelaide Briton Ltd issued a prospectus on 1 June 20X1 inviting applicants for 3,000 debentures of face amount $2,000, payable in full on application. Terms were 12% p.a. interest, payable annually, with a maturity date of 30 June 20X4. Exactly the right amount of applications were received by 30 June 20X1.
- Prepare general journal entries to record the issue of debentures.
- Prepare general journal entries to record the payments of interest and the repayment of principal.
- Prepare ledger entries to record (a) and (b) above.
Swan River Ltd purchased a parcel of assets and liabilities comprising a business directly from Lyneham Pty Ltd. The parcel, measured at net fair values, consisted of:
Balance of Accounts:
Prepare journal entries to record the acquisition by Swan River Ltd, assuming that:
- The cost of acquisition was $200,000 cash.
- The cost of acquisition was $144,000 cash.
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