Reference no: EM132534085

Question - The following data relates to ABC Ltd:

Profit for the year ended 30 June 20X1, $500,000.

On 31 March 20X1, the directors decided to pay an interim cash dividend of $100,000.

On 7 April 20X1, the interim dividend was paid.

For final dividends, the company's constitution provides that the directors can recommend a dividend to be subsequently declared by a resolution of the members in a general meeting.

The directors recommended a final dividend of $250,000 to be paid.

The shareholders accepted the final dividend at the annual general meeting, and payment was made on 14 September 20X1. Required

Required -

(a) Prepare journal entries to record the above dividend payments.

(b) Prepare the retained profits general ledger account.