The owner of a taxi business(“Speedy”)has been having difficulties in accounting for the company’s liabilities and equity and has asked for your assistance (ignore GST).

Required:

EQUITY: Speedy has 400,000 ($40 per share) common shares issued. It declares a 20% share dividend on the 1st of June 2020 at a value of $48 per share, and issues the dividend on the 30th of June 2020. On the 1st of August, 2020, it declares a cash dividend of $2.00 per share. You are required to journalize the entries in relation to these dividend transactions. 

 Prepare the general journal entries in relation to these dividend transactions.