The below transactions are for Jenolan Ltd.

1. Profit for the year was \($3\) 500 000. Ignore income tax.

2. Directors resolved to transfer the amounts specified below from retained earnings to:

• contingencies reserve, \($2\) 000 000

• general reserve, \($800\) 000.

3. Some years ago, the company had established an exchange fluctuation reserve, \($9\) 000 000, but now that it had withdrawn from international trade, this reserve was no longer required.

4. Start-up costs \($500\) 000 were to be written off. This has not been reflected in the profit in (1) above.

5. An interim dividend of \($400\) 000 had been paid and directors recommended a final dividend of \($600\) 000 to be paid in 3 months’ time, after ratification by shareholders at the annual general meeting. Both dividends were paid out of retained earnings.

Required

(a) Show the journal entries to record 1 to 5 above.

(b) Prepare the statement of changes in equity for Jenolan Ltd.