Zipco Limited ("Zipco"), a company that was incorporated on 23 January 1988, is involved in the production and distribution of electronic games. Prior to 1 January 2017, Zipco had issued 100,000 ordinary shares as follows:

Requirement:

(a) If a company announces a final dividend at the end of its financial period, discuss whether the dividend payable should be recognized.

(b) Prepare the statement of changes in equity for Zipco for the year ended 31 December 2017.

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. 90,000 1 ordinary shares were issued for 2 per share cash on 23 January 1988; 5,000 1 ordinary shares were exchanged on 3 September 1992 for a patent that had a fair value at the date of exchange of 50,000; and 5,000 1 ordinary shares were issued on 14 July 2016 for 20 per share cash. At 1 January 2017, Zipco had a balance in its retained earnings of 500,000, while the general reserve and the revaluation surplus had credit balances of 200,000 and 300,000, respectively. The purpose of the general reserve is to reflect Zipco's need to regularly replace certain computer equipment because of technological advances. During the year ended 31 December 2017, the following transactions occurred: