The following information relating to the year ending 30 June 2016 for Penrith Ltd has been obtained from the company’s records.

Profit for year before further adjustments and tax Retained earnings (1 July 2015) General reserve Revaluation surplus Interim dividend paid Development costs

$33000 5500 3000 2500 5000 3500

On 30 June 2016, the directors decided to:

1.    Recommend a final cash dividend of $7000, to be ratified by shareholders at the annual general meeting

2.    Write off development costs

3.    Increase the general reserve by $1000

4.    Provide for an estimated tax expense and current tax liability of $7500 on 2015–16 profits.

Required

Record the adjustments in ledger accounts and prepare a statement of changes in equity for Penrith Ltd for the year ended 30 June 2016.