REQUIREMENTS FOR ASSIGNMENT

1.

You are presented with equity information together with five separate events for Status Quo Music Ltd (SQML) that give rise to transaction/s. Prepare all the general journal entries that arise for the period 1st July 20X1 to 30th June 20X2 only. You also need to provide supporting information (ie a working paper) for each journal entry. Furthermore after each of the five events provide the following:

The number of ordinary shares on issue subject to the dividend

reinvestment plan.

The number of ordinary shares on issue which are not subject to the

dividend reinvestment plan.

The total number of ordinary shares on issue.

2. Prepare general ledger T account for Ordinary Share Capital for the period

1/7/20X1 to 1/7/20X2. Ensure it is properly balanced at 30/6/20X2.

Status Quo Music Ltd (SQML) is a public company and was incorporated a number of wwwwww* years ago and has been very successful. The equity section of the balance sheet of the company at the 30* June 20X 1 isprovided below: OWNERS' EQUITY Issued Capital 250,000,000 General Reserve 45,678,000 Retained profits 22,987,000 TOTAL OWNERS' EQUITY 318,665,000 The company's financial year ends on 30th June. Additional Information: 1. Issued capital is comprised of: . 8,500,000 ordinary shares all issued at $20.00 each . $80,000,000 of 4.5%pa preferenceshares. Dividends on these shares are paid annually on the last day of November. A list of ordinary shareholders and their holdings as at 30* June 20X1 is provided on the next page. Note: DRP = "Y" elected to be in the dividend reinvestment plan The amounts under 1/7/20X1 = number of shares held at that date (Ensure that you have fully read and understood the information previously provided under the Basic Details for the assignment.)Family name/Corporate name First Name DRP 1/7/20X1 Oliver Patsy Y 150,000 Rivera Ricky Y 189,000 Lindsey Irving Y 75,000 Wagner Pty Ltd Y 238,000 Nelson Rita Y 78,000 Fowler William y 126,000 Hoffman Superannuateon Fund 545,000 Graves Lois 55,000 Bradley Gladys 100,000 Carpenter Priscilla 121,000 Gibson Wilson y 249,000 Reyes International Ltd Y 179,000 Mccoy Marta Y 126,000 Palmer Wilma y 75,000 Bush Lila y 80,000 King Enterprises Pty Ltd Y 1,430,000 Watson Patty Y 126,000 Watts Kristina Y 390,000 Hernandez Angel y 27,000 Simmons Jenna y 135,000 Mack Investments Ltd 980,000 Parks Johnny 225,000 Peterson Tanya 143,000 Floyd Angie 72,000 Elliott Rebecca 111,000 Parsons Maryann 12,000 Houston Investment Trust 1,000,000 Chambers Shannon 123,000 Fletcher Jeff 109,000 Wright Tim 74,000 Daniels Bennie 57,000 Boyd Suzanne 83,000 Baker Ltd 111,000 Alvarez Genevieve 66,000 Curtis Orlando 133,000 Martin Trading Ltd 96,000 Stewart Antonia 18,000 Quinn Guy 161,000 Diaz Orville 54,000 Osborne Jan 166,000 Tran Superannuateon Trust 212,000Shareholders who elected to participate in the dividend reinvestment plan introduced by SQML receive ordinary shares in lieu of cash for dividends. Shareholders must agree that theirentire holding is subject to the DRP plan. Shares are issued at 94% of the closing ASX share price on the day in which the dividend is declared. It is likely that a resulting calculation of the number of shares under the DRP plan will result in a part share (ie not a whole number). In that event the number of shares will be rounded down to the next whole number. For example, acalculation which results in 12,345.78 shares will be rounded down to 12,345. That is, that part of the share is lost. Whenever the rounding occurs that rounded down number will be used as the basis for future transactions and calculations. Other rounding conditions are: . The principle of rounding down the number of shares (as in the DRP above) applies to any share issue . Calculations which involve share prices, should be rounded to the nearest cent . Journal entries should be rounded to the nearest whole dollar The following are matters which occurred from Status Quo Music Ltd (SQML) during 20X1/X2. 1 . On the 12 June 20X1 the company determined a final dividend of 7.0 cents per ordinary share. This was declared on the 22" July 20X1 and paid four (4) days after the annual general meeting which was held on the 18h September 20X1. 2 . At the Board of Directors meeting on the 21" October 20X1 they made a decision to offer ordinary shareholders a 1:12 rights issue. Shareholders who accept the offer pay 90% of the share price on the day of the Board decision. Acceptance and payment by shareholders needs to be made on the 18" December 20X1. The following shareholders took up the offer and paid the appropriate amounts on the required date:Family name/Corporate name First Name Rivera Ricky Lindsey Irving Nelson Rita Graves Lois Gibson Wilson Reyes International Ltd Bush Lila King Enterprises Pty Ltd Watson Patty + Hernandez Angel Parks Johnny Floyd Angie Elliott Rebecca Parsons Maryann Fletcher Jeff Daniels Bennie Baker Ltd Curtis Orlando Quinn Guy Osborne Jan + 3. On the 2" March 20X2 SQML declared and paid an interim dividend of 5 cents per ordinary share. 4. On the 12" May 20X2 SQML announced a bonus ordinary share issue of 1:10 at an issue price of $20.00/share. The bonus issue is to be paid out of the General Reserve and was made on the 31 st May 20X2. 5. On the 18" June 20X2 the company determined a final dividend of 8.0 cents per ordinary share. It is planned that this will be declared on the 22" July 20X2 and paid four (4) days after the annual general meeting which is scheduled for the 12th September 20X2.The following are a selection of AS): closing daily share prices for SGML Closing Share Closing Share m m m m m m m "ml\" Im "ml\" ____I Im ____I "ml\" "ml\" "WI\" REQUIREMENTS FOR ASSIGNMENT 1. You are presented with equity information together with five separate events for Status m Music Ltd {SGML} that give rise to transactionls. Prepare all the general journal entries that arise for the period 1st July 2am to 30th June HIKE only. You also need to provide supporting information [iea working paper} for each journal entry. Furthermore after each of the five events provide the following: The number of ordinary shares on issue subject to the dividend reinvestment plan. The number of ordinary shares on issue which are not subject to the dividend reinvestment plan. The total number of ordinary shares on issue. 2.Prepare general ledger T account for Ordinary Share Capital for the period 1FHIUK1 to 1l2th2. Ensure it is properly balanced at someone