Fairweather Manufacturing Ltd (FML) is a public company and was incorporated a number of years ago and has been very successful.

Theequitysectionofthebalancesheetofthecompanyatthe30thJune20X3isprovided below:

OWNERS' EQUITY $

Issued Capital 42,500,000

Reserves 12,245,000

Retained profit 3,276,500

TOTAL OWNERS' EQUITY 58,021,500

The company's financial year ends on 30th June.

Additional Information:

1.Issuedcapitaliscomprisedof:

3,125,000ordinarysharesallissuedat$8.00each

$17,500,000of2.5%papreferenceshares.Dividendsonthesesharesare paidsixmonthlyonthefirstdayofOctoberandAprileachyear.

2.Reserves is comprisedof:

General Reserve of$7,630,000

AssetRevaluationReserveof$4,615,000

Alistofordinaryshareholdersandtheirholdingsasat30thJune20X3isprovidedonthe next page.Note:

DRP="Y"electedtobeinthedividendreinvestmentplan

Theamountsunder1/7/20X3=numberofsharesheldatthatdate

Family name/Corporate name First Name DRP 1/7/20X3

Adkins Darin 78,500

Andrews Lee Y 34,000

Ball Superannuation Fund 78,900

Ballard Jeffrey Y 25,600

Barnett Jean Y 97,500

Castro Investment Pty Ltd 100,000

Crawford Israel 23,400

Erickson Karl 55,500

Foster Isaac Y 12,500

Francis Gordon Y 98,700

French Enterprise Ltd 280,700

Gonzalez International Ltd 65,000

Grant Alfonso 32,900

Gray Abel Y 11,200

Griffin William 22,000

Hale & Doug Pty ltd 65,500

Holmes May Y 121,100

Holt Harriet Y 54,000

Jensen Oriental Ltd 58,000

Jordan Dianne 87,200

Mann Sherman 22,500

Mason Leonard 8,000

Meyer Minnie Y 43,600

Montgomery Cornelius Y 58,200

Morrison Candace 69,100

Neal Faith Y 71,800

Norton Archie 85,300

Ossie Trading Ltd 325,000

Perry Ernestine 36,400

Potter Practice investments Ltd 143,600

Reid Lana Y 59,000

Salazar Trust Y 248,000

Silva Alexandra 65,400

Stephens Superannuation Fund 190,000

Stevenson Jake 28,000

Stone Glenda Y 45,200

Sutton Willie 62,500

Thompson Andrew 11,900

Todd Sara 22,200

Underwood Pty Ltd Y 127,100

Shareholders who elected to participate in the dividend reinvestment plan introduced by FMLreceiveordinarysharesinlieuofcashfordividends.Shareholdersmustagreethat theirentireholdingissubjecttotheDRPplan.Sharesareissuedat96%oftheclosing ASXsharepriceonthedayinwhichthedividendisdeclared.Itislikelythatacalculation ofthenumberofsharesundertheDRPplanwillresultinapartshare(ienotawhole number).Inthateventthenumberofshareswillberoundeddowntothenextwhole number.Forexample,acalculationwhichresultsin12,345.78shareswillberounded downto12,345.Thatis,thatpartoftheshareislost.Whenevertheroundingoccurs thatroundeddownnumberwillbecomethenewshareholdingasthebasisforfuture transactions andcalculations.

Other rounding conditions are:

Theprincipleofroundingdownthenumberofshares(asintheDRPabove) appliestoanyshareissue.

Alsonotethatcareneedstobetakenwithsomecalculations.Whencalculating dollaramountsfordividendsetcyouneedtodotheseonindividualshareholders andthenaggregatethosenumbersforthejournalentry.

Calculationswhichinvolveshareprices,shouldberoundedtothenearestcent (ie2decimalplacesofadollar).

Journalentriesshouldberoundedtothenearestwholedollar.

Thefollowingarefiveeventsthatrelatetothe20X3/X4financialyearforFairweather Manufacturing Ltd(FML).

1.Onthe22ndJune20X3thecompanydeterminedafinaldividendof4.0centsper ordinaryshare.Thiswasdeclaredonthe14thJuly20X3andpaidthree(3)days aftertheannualgeneralmeetingwhichwasheldonthe28thSeptember20X3.

2.Onthe12thNovember20X3FMLannouncedabonusordinaryshareissueof1:15 atanissuepriceof$12.00/share.ThebonusissueistobepaidoutoftheGeneral Reserveandwasmadeonthe30thNovember20X3.

3.Onthe2ndJanuary20X4FMLdeclaredandpaidaninterimdividendof2.5centsper ordinaryshare.

4.TheFMLBoardofDirectorshadbeenworkingontheacquisitionofarivalbusiness andonthe16thJanuary20X4receivedadviceofacceptanceofapurchaseprice.To helpfundtheacquisitionFMLdecidedtoraisesomecapitalthrougharightsissue ofordinaryshares.Theyformalisedtherightsissueattheirmeetingonthe

28thJanuary20X4wheretheydecidedtoofferordinaryshareholderstherights issueona1:12basis.Shareholderswhoaccepttheofferpay85%oftheshareprice onthedayoftheBoarddecision.Acceptanceandpaymentbyshareholdersneeds tobemadeonthe18thFebruary20X4.Theamountpaidisbasedontherounded downnumberofsharesissued.Thefollowingshareholderstookuptheofferand paidtheappropriateamountsontherequireddate:

Family name/Corporate name First Name

Adkins Darin

Andrews Lee

Ball Superannuation Fund

Barnett Jean

Castro Investment Pty Ltd

Crawford Israel

Erickson Karl

Foster Isaac

Francis Gordon

French Enterprise Ltd

Grant Alfonso

Gray Abel

Griffin William

Hale & Doug Pty ltd

Mann Sherman

Mason Leonard

Meyer Minnie

Norton Archie

Ossie Trading Ltd

Perry Ernestine

Potter Practice investments Ltd

Reid Lana

Salazar Trust

Silva Alexandra

Stephens Superannuation Fund

Sutton Willie

Todd Sara

Underwood Pty Ltd

5.The20X3/X4financialyearwasexceptionalforFMLanditdecidedtorewardits ordinaryshareholders.AttheDirectorsmeetingonthe13thJune20X4itdecidedto provideatwofoldbenefit.First,isabonusshareissueona1:25basisissuedat

$12.50pershareandfundedfromexcessamountsintheAssetRevaluation Reserve.Second,isthatthemeetingdeterminedafinaldividendof5.0centsper ordinarysharewhichishopedtobedeclaredsometimeinJuly20X4.

The following are a selection of ASX closing daily share prices for FML

Date ClosingShare Price$ Date ClosingShare Price$

6/6/X3 $12.46 14/12/X3 $12.14

15/6/X3 $12.55 2/1/X4 $12.12

22/6/X3 $12.54 18/1/X4 $12.26

5/7/X3 $12.39 28/1/X4 $12.45

14/7/X3 $12.50 12/2/X4 $12.51

12/8/X3 $12.46 18/2/X4 $12.60

31/8/X3 $12.51 30/3/X4 $12.63

12/9/X3 $12.60 12/4/X4 $12.59

28/9/X3 $12.62 29/4/X4 $12.52

1/10/X3 $12.58 12/5/X4 $12.56

11/10/X3 $12.51 31/5/X4 $12.55

2/11/X3 $12.30 8/6/X4 $12.59

30/11/X3 $12.06 13/6/X4 $12.83

4/12/X3 $12.07 30/6/X4 $12.88

Question"

Youarepresentedwithequityinformationtogetherwithfiveseparateeventsfor FairweatherManufacturingLtd(FML)thatgiverisetotransaction/s.Prepareallthe generaljournalentriesthatarisefortheperiod1stJuly20X3to30thJune20X4only. Youalsoneedtoprovidesupportinginformation(ieaworkingpaper)foreach journalentry.Furthermoreaftereachofthefiveeventsprovidethefollowing:

Thenumberofordinarysharesonissuesubjecttothedividend reinvestmentplan.

Thenumberofordinarysharesonissuewhicharenotsubjecttothe dividend reinvestmentplan.

Thetotalnumberofordinarysharesonissue.