Q1) The following is the equity of Paris Ltd on 30 June 2019:

Share capital (fully paid ordinary shares at $3.50) $ 2 100 000

General reserve 640 000

Revaluation surplus 160 000

Retained earnings 310 000

Total $ 3 210 000

The following transactions occurred during the year ended 30 June 2020.

1. At the annual general meeting on 1 September 2019, the directors confirmed a final dividend of 20c per share for the year ended 30 June 2019. The dividend had been proposed (determined) on the 28 June 2019 and had not been provided for in the annual financial statements. Dividends were paid by direct debit at the close of the meeting.
2. On 31 December 2019, the directors, who were keen to keep cash resources in the business for further expansion of plant facilities, made a bonus share issue of 1 share for every 12 shares held valued at $3.80 per share from the general reserve.
3. On 30 June 2020, the directors decided to transfer $50 000 from the revaluation surplus to the general reserve. This portion of the surplus related to an asset that had been sold in May 2019.
4. The profit for the year after charging income tax expense of $140 000 was $690 000.
5. On 30 June 2020, the directors recommended a final dividend of 10c per share out of retained earnings. This was expected to be ratified and paid at the annual general meeting on 28 August 2020.

Required:

1. Prepare journal entries to record the transactions and also show the workings or calculations for journal entries. (10 MARKS)