Reference no: EM132628597

Fed Ltd has the following authorised share capital:

Authorised:900 000 Ordinary shares

500 000 12% Preference shares

The issued share capital at 31 December 2019 is as follows:

400 000 Ordinary shares at RI ,00 each, and

200 000 12% Preference shares at R2, 00 each

Of the issued share capital, the following shares were issued on 30 June 2019 and have been correctly recorded:

100 000 Ordinary shares at RI each, and

50 000 12% Preference shares of R2,00 each

On 30 November 2019 directors declared an ordinary dividend of 50 cents per share payable to all shareholders registered on 31 December 2019.

Problem 1: Show general journal entries to record the declaration of dividends on 30 November 2019 and the subsequent payment of dividends on 31 December 2019.

Problem 2: Show dates on which the journal entries will be recorded. Include a brief narration.