The appropriate journal entry to record the issue of the shares (for a public issue) at the date of issue is: A. B. C. D. DR Cash CR Share Capital DR Application CR Share Capital DR Share Capital CR Cash Trust DR Cash CR Issue of Shares Question 2 In the year ending 30 June 2020 a company had a successful share issue and incurred (and paid) related share issue costs. For the year ending 3 June 2020 these costs should be: Recognised as an expense in the profit/loss for the period B. A. Shown as a reduction (deducted from) in share capital C. Deducted from retained earnings None of the other answers are correct. D. Question 3 The directors of a company recommended a dividend (i.e. further authorisation or approval was required) from retained earnings on 30 June 2019. This dividend was subsequently approved (declared) and paid on 1 August 2019 Which of the statements below is correct for the reporting period ending 30 June 2020? These dividends would be recognised in the statement of changes in equity in the reporting period ending 30 June 2020 These dividends would be recognised as an expense in the profit/loss for the reporting period ending 30 June 2020 A payment (liability) in related to these dividends would be recognised in statement of financial position for the reporting period ending 30 June 2020 None of the other answers are correct. A. B. C. D. Question 4 Some journal entries are listed below: (i) DR Retained earnings CR General Reserve DR Transfer to generate reserve CR General Reserve (iii) DR General Reserve CR Retained earnings Which of the following statements is correct? When making a transfer from retained earnings to general reserve: A. Journal entry (ii) could be used B. Either of journal entries (i) or() could be used C. Either (i), (ii) or (ii) could be used