At 31 December 2023, OZWise Ltd has the following components of Equity:Contributed equity 2,500,000 ordinary $1 sharesRetained earnings $ 4,000,000Reserves $ 600,000On 31 December 2023, the directors of the company declared a 10% share dividend to bepaid out of the balance in the Retained earnings account on 5 January 2024.Required(a) Prepare journal entries to record the declaration and payment of share dividends.(b) Calculate the balance of the retained earnings after the payment of share dividends.

Traders Ltd had the following equity balances at 1 April 2022:Share capital (400,000 shares)$1,250,000Retained earnings$5,030,225 The following transactions related to equity occurred in the year ended 31 March 2023:15 August 2022Declared interim share dividend of 10% of shares at $5.40 per share. 10 September 2022Shares issued for the interim share dividend.1 March 2023Declared final cash dividend of 13 cents per share for the year ended 31 March 2023What is the journal entry to record the issue of shares for the interim share dividend on 10 September 2022?Group of answer choicesDr Share dividends payable $216,000 Cr Share capital $216,000Dr Retained earnings $52,000 Cr Share capital $52,000Dr Dividends $52,000 Cr Cash $52,000Dr Cash $216,000 Cr Share capital $216,000

Question 4 (Adapted Past exam question): Finding Equity’s balanceThe following opening balances are provided on 1 July 2019 for Wonder Alice Ltd:Retained Profits $50,000Share Capital $100,000General reserve $10,000Revaluation surplus $20,000Total Shareholder’s Equity $180,000During the financial year, the following transactions happened:• The company made a net profit after tax of $50,000.• The company transferred $15,000 from retained profits to general reserve.• The company declared and paid cash dividends totalled $20,000.• The company issued 1,000 new shares to an institutional investor and received$15,000 cash.• A bonus share issue of $10,000 was made out of the Revaluation Surplus.Required:(1) Draw up all the equity T-accounts (retained profits, share capital, general reserve,revaluation surplus)(2) Find the ending balance of Shareholders’ Equity

Assume OzCpy is an Australian firm whose shares trade on the ASX. The firm earn part of its domestically income in Australia and and part of its income overseas, where it is required to pay tax to the foreign governments where it operates. Currently, the Australian corporate tax rate is 30% and the Medicare levy is 2%. OzCpy provides dividend imputation to Australian-resident shareholders from its Australian tax paid.Assume that OzCpy pays a 88% partly-franked dividend of $13.4 thousand to an Australian shareholder who has a marginal tax rate of 45% and who is exempt from paying the Medicare levy.  Compute the income tax payable by this investor on the partly-franked dividend.

The shares of ABC Inc.,traded at $65 after its financial statements were published atthe end of year 2021.The balance sheet reported a book value per share (BPS)of$24.50.The income statement reported an earnings per share of(EPS)of$3. A dividendper share(DPS)of $1.50 was distributed for 2021.Analysts are forecasting an EPS of$3.60 for 2022 and$4.80 for 2023.Assume a fixed dividend payout ratio.The requiredreturn of equity is 10 percent.1.Calculate the intrinsic value per share in early 2022 with a forecast that residualearnings will grow at the long-term GDP growth rate of 4% after 2023.(5 marks)2.What is the forecast of the long-term residual earnings growth rate after 2023 that isimplicit in the market price?(4 marks)3.Based on the residual earnings model,calculate the market implied forecast of EPSfor 2024 and 2025.(6 marks)

Retained earnings reflect:Question 4Answera.The total debt owed by the companyb.The market value of the company's common stockc.The initial investment made by ownersd.Profits earned by the company over time