The equity of Foresters Ltd at 30 June 2019 consisted of:

Share capital: 200 000 10% cumulative pref. shares issued at $2, fully paid $400 000

fully paid 100 000 ordinary shares issued at $1, paid to 50c 50 000

General reserve 40 000

Retained earnings 860 000

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

2019 June 30

Already deducted from the retained earnings balance of $860 000 were final ordinary dividends of $7000 and preference dividends of $40 000 that had been declared at 30 June 2019. These dividends were expected to be paid later in 2019.

July 9

Final call made on 100 000 partly paid ordinary shares.

Sept 19

Call money received.

Oct 5

Final dividends paid.

Oct 21

Revaluation of an item of land upwards by $50 000. (This is the initial revaluation of land. Ignore taxation.)

Oct 22

With the surplus created from the revaluation of land, the directors made a bonus issue of ordinary shares to existing ordinary shareholders, on the basis of 3 shares for every 10 shares, valued at $1.08 per share.

2020

Jan. 10

Interim dividend of 6c per ordinary share paid out of retained earnings.

June 30

Preference dividend for the year and final ordinary dividend of 6c per share were declared. Transfer of $3000 to the general reserve from retained earnings. Required:

Prepare journal and ledger accounts to reflect the above transactions