Reference no: EM131800555

The following is the equity of Bowral Ltd at 30 June 2016.

Share capital (120,000 fully paid ordinary shares) $240,000

General reserve                                                  160,000

Retained earnings                                               10,000

The transactions below occurred during the year ended 30 June 2017. 2016

July1 Prospectus issued inviting offers for 60,000 shares to be issued for $4 per share. These shares were offered to existing shareholders on the basis of 1 share for every 2 shares at present held. Shares were payable in full on application and rights to the issue were transferable. The prospectus provided that these shares were to rank equally with existing shares from 1 July 2016. The issue was underwritten for a commission of $10,000.

In addition, 120,000 shares were privately placed with QLM Insurance Ltd at $2.00 per share, and these shares were to rank for dividend purposes from 1 October 2016.

July 31 The issue closed fully subscribed, the holders of 38,000 shares having transferred their rights. Directors proceeded to allotment. Aug.  1 Underwriting commission paid.

Sept. 22 At the annual general meeting, shareholders approved a final dividend of 15c per share for the year ended 30 June 2016. The dividend had not been recorded in the accounts for the year ended 30 June 2016. Dividends were paid by direct debit to shareholders after the close of the meeting. Dividends were paid from general reserve.