Urquhart Ltd’s balance sheet, before a share dividend, is as follows.

Required

(a) Prepare any journal entries necessary to record the payment of this share dividend.

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ASSETS Cash at bank Non-current assets URQUHART LTD Statement of financial position as at 30 June 2025 EQUITY $ 60 000 Share capital $ 300 000 470 000 General reserve 125 000 Retained earnings 105,000 $ 530 000 $ 530 000 The company immediately declared a share dividend from the general reserve on the basis of 1 bonus share for every 4 shares held. All shares were issued at $1.50.