E10.2 On 1 January 2016 Otter Ltd's share capital comprised 95 000 issued ordinary shares (5950 000) and retained earnings of $350 000. During the year, the following transactions occurred. Apr. 1 Issued 3000 additional ordinary shares for $15 per share. June 15 Declared a cash dividend of $2.50 per share to ordinary shareholders. July 10 Paid the $2.50 cash dividend. Dec. 1 Issued 4000 additional ordinary shares for $18 per share. 15 Declared a cash dividend on issued ordinary shares of $2.80 per share to shareholders. 31 Profit for the year was $925 000. Required a. Prepare the journal entries to record the above transactions. b. Prepare the equity section of the statement of financial position as at 31 December 2016. c. What are the requirements for a company to pay a dividend? Compare effects ofa share dividend and a cash dividend. (L05)