Retained earningsAt 1 July 2013 the balance in the Retained Earnings account of

Retained earningsAt 1 July 2013 the balance in the Retained Earnings account of Daisy Ltd was $2000000. During the year ended 30 June 2014 the following events occurred:1. Directors paid an interim ordinary dividend of $400000 during the period and declared afinal ordinary dividend of $460 000. A dividend was declared on the preference shares. The companys share capital comprises 600 000 8% preference shares issued for $1.50 per share and 350 000 ordinary shares fully paid at $2 per share.2. Profit for the year was $1 750 000.3. All buildings were to be revalued on 30 June 2014 from a carrying amount of $2800000(original cost of $5000000) to $6500000. Depreciation has already been charged up to 30 June 2014.4. Directors resolved to transfer $720 000 to a general reserve and to transfer $1 800 000 from apreviously created plant maintenance reserve back to retained earnings.