Czernkowski Company had the following balances in its shareholders equity at 1 January: Contributed equity (450 0000 ordinary shares) = $2 100 000 Retained earnings = 2 225 000

During the year, Czernkowski had the following transactions:

1 Mar. Issued 200 000 ordinary shares for cash at $8 per share. 1 Jul. Declared a 1 for 10 share dividend, payable 1 August. The shares were trading at $7 per share on 1 July.

15 Aug. Declared a 50 cent per share cash dividend of record on 1 September, payable 15 September. 1 Oct. Bought back 6000 ordinary shares for $45 000.

31 Dec. Revenue for the year $1 620 000, expenses for the year $1 100 000.

REQUIRED a Prepare the journal entries to record the transactions. b Prepare Czernkowskis 31 December shareholders equity section of the balance sheet. c Calculate earnings per share for the year.