Reference no: EM132567038

Question - At 1 July 2019, the balance in the Retained Earnings account of Melbourne Ltd was $3 500 000. The company's share capital at the 1 July 2019 comprises 400 000 6% preference shares issued for $2.00 per share and 1 400 000 ordinary shares fully paid at $1 per share. During the year ended 30 June 2020, the following events occurred:

1. On 1 February 2020, the directors declared and paid an interim ordinary dividend of $124 000 from retained earnings.

2. On 14 March 2020, the directors issued 20 000 ordinary bonus shares fully paid at $1.40 per share from retained earnings.

3. Profit for the year was $3 300 000.

4. On 30 June 2020, the directors declared a final ordinary dividend of $480 000. A dividend was also declared on the preference shares.

5. On 30 June 2020, the directors resolved to transfer $1 200 000 to a general reserve from retained earnings, and to transfer $2 000 000 from a previously created plant maintenance reserve back to retained earnings.

 Required - Prepare journal entries for the above transactions at 30 June 2020.