Required

Prepare the journal entries (in general journal form) necessary to record the above events in Babble Ltds accounting records

Question 2 Not yet answered Marked out of 24.00 $576 000 At 30 June 2019, Babble Ltd's equity was as follows: Issued capital: 480 000 ordinary shares issued at $1.20, fully paid 96 000 7% preference shares issued at $1, fully paid 96 000 p Flag question 672 000 Retained earnings 417 600 General reserve 84 000 Total equity $1 173 60 The preference shares were non-participating. The following events occurred after 30 June 2019: The preference shares were non-participating. The following events occurred after 30 June 2019 2019 Sept. 1 Final dividends out of retained earnings, as recommended in June, were paid in cash. This included the 7% preference dividend for the year ended 30 June 2016 and a final ordinary dividend of 100 per share. Oct. 15 A prospectus was issued inviting subscriptions for 120 000 ordinary shares at an issue price of 51.40, payable 80 cents on application and 60 cents on allotment. Nov. 18 Applications closed, with applications having been received for 120 000 shares. Applicants for 9 600 shares had paid in full on application Nov. 20 Shares applied for were allotted, with excess application money being applied to allotment Dec. 11 The balance of allotment money due was received. Dec. 31 In order to keep cash in the company to meet its ever- increasing need for liquidity, the directors decided not to pay an interim cash dividend. Instead, they made a bonus issue from the general reserve of one ordinary share (valued at $1.20) for every 10 ordinary shares held. 2020 June 20 The directors paid the preference dividend for the year. une 30 The directors recommended a final dividend of 12c per ordinary share