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Final dividend payable $500,000 - (30/06/2019); $750,000 - (30/06/2020)
Retained earnings $7,000,000- (30/06/2019); $8,500,000 - (30/06/2020)
During the year ended 30 June 2020, the company declared and paid interim dividend to all ordinary shareholders and issued 500,000 shares at $2.00 per share in cash in March 2020. The management transferred $600,000 from the retained earnings account on 30 June 2020 to set up a property maintenance reserve account in preparation of some major maintenance work suggested by the Health and Safety department. Muddy Ltd reported $3,300,000 profit for the year ended 30 June 2020.
Required:
Question 1: Calculate the amount of interim dividend paid in cash. Show all workings
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