Broken Hill Ltd’s equity at 30 June 2016 was as follows:

200000 ordinary shares, issued at $3.20, fully paid 500000 ordinary shares, issued at $3.40, called to $2.40 180000 redeemable preference shares, issued at $1, fully paid Calls in advance (10 000 ordinary shares) Share issue costs General reserve Retained earnings

$64000  1 200 000  180000  10000  (9 700) 60000  300000

The following events occurred during the year ended 30 June 2017:

2016

July  15 Aug. 31 Sept. 20 Dec. 10 2017 Jan.   3 Jan. 31 Feb.   5 June 30

The final call, due 31 August, was made on the partly paid shares. All call money was received. Paid the final dividends (ordinary: 20c per fully paid equivalent share, and preference: 9%) declared on 30 June 2016. Declaration and payment of a 6c per fully paid equivalent share interim dividend on ordinary shares. A prospectus was issued, inviting applications for 160000 ordinary shares at an issue price of $2.50, payable in full on application. The issue closed fully subscribed, with all money due having been received. The 160000 shares were allotted. The directors declared a final dividend of 12c per share (payable on 20 September 2017), and transferred $100000 to the general reserve.

Required

A. Prepare journal entries (in general journal form) to record the transactions.

B. Prepare a statement of changes in equity for the year ended 30 June 2017, assuming profit for the year was $36 000.