The equity of Kenselmac Ltd at 14 February 2018 consisted of:

Share capital: 800 000 shares (fully paid for $2) 600 000 shares (paid to $1, issued at $2) General reserve Plant replacement reserve Retained earnings

$

1 600 000 600 000 100 000 50 000 125 000

The following events occurred during 2018:

Feb. 15 April  2 May 30 June 30 Aug. 15 Aug. 16

Interim dividend of 10c per share declared and paid. Final call made on the 600 000 partly paid shares. All call money received. Profit before tax for the year was $700 000 out of which the following adjustments were made (if appropriate): (a) Income tax expense was determined as $250 000. (b) Final dividend of 5c per share on all issued shares was recommended. (c) Transfers to reserves:         General reserve $40 000     Plant replacement reserve $30 000 (d) Directors revalued the company’s properties by $300 000. Shareholders approved the final dividend and a 1-for-5 bonus issue of shares at a price of $1 per share to be satisfied out of the surplus arising from revaluation of properties. Payment of final dividend and allotment of bonus shares.

Required

A. Prepare general journal entries for the above transactions.

B. Show the Retained Earnings account up to 31 August 2018.

C. Show the equity section of the statement of financial position as at 31 August 2018.