ASSIGNMENT 1 (40 MARKS) WOW Ltd (hereafter "WOW") is a company that manufactures and distributes bottles used for the packaging of different types of beverages. WOW is based in Johannesburg and is listed on the JSE. It was incorporated on 1 January 2008 with an authorised share capital of 12 000 000 par value shares of R2. WOW has a 30 June financial year end. The accountant of WOW (Mrs. Pack) requires assistance with financial reporting issues. Below is an extract of balances of WOW at 30 June 2023 that was provided to you by Mrs. Pack: Notes Retained earnings: 30 June 2023 Ordinary share capital - (1 July 2022) Share premium - (1 July 2022) Ordinary dividend payment on 5 July 2022 (This payment of a final dividend distribution is in respect of the 2022 financial year. RO.35c per share - declared on 25 June 2022) Dividend distribution interim dividend R0.15c per share - declared and paid on 31 December 2022 Dividend distribution - final dividend R0.23c per share - declared on 30 June 2023) SARS current tax payable Bank 1 2 4 Dr R a) 805 000 2 345 000 621 000 6 720 000 29 550 000 Additional information: 1. The final dividend of R0.35c per share which was declared on 25 June 2022 in respect of the 2022 financial year was paid on 5 July 2022. Cr R 77 172 000 ? 84 000 000 2. The directors declared on 31 December 2022 an interim dividend of R0.15c per share to all the registered shareholders on that date. 3. On 1 March 2023, the directors offered 600 000 ordinary shares to the public for subscription at R46.00 per share. The closing date for applications was 30 April 2023. WOW received applications for 500 000 shares. On 15 May 2023, the directors of WOW allotted ? ordinary shares to the public. The costs arising from the issue of shares were R570 000 (excluding VAT) in respect of the ordinary shares sold to the public and these were paid on 15 May 2023. 4. On 30 June 2023, WOW declared a final dividend of R0,23c per ordinary share. The dividend will be paid on 30 July 2023. 5. The tax expense for the 2023 financial year was reliably calculated at R9 030 000. 6. The profit before tax of WOW was reliably calculated at R25 740 000. 7. VAT is levied at 15% and all the entities that WOW transacts with are registered VAT vendors unless otherwise stated. REQUIRED: Prepare all the necessary journal entries to account for the information given in the information above in the financial records of WOW for the financial reporting period ended 30 June 2023. (22) b) Present the statement of changes in equity of WOW for the financial year ended 30 June 2023. (12) c) Prepare the share capital note disclosure in the notes to the financial statements of WOW for the financial year ended 30 June 2023. (6)