36.5A Futurescope Ltd has an authorised capital of 200,000 3% preference shares of £1 each and 500,000 ordinary shares of 50p each. After preparation of the income statement for 2020, the following balances remained in the ledger: £000 Share capital: fully paid-up: Preference 20 Ordinary 130 Loan notes 116 Share premium account General reserve 78 30 Retained profits at 1 January 2020 Net profit for 2020 282 43 Non-current assets 612 Current assets 191 Accounts payable 104 The directors recommend: (1) that £12,000 be transferred to general reserve, (i) payment of the preference dividend, (iii) an ordinary dividend of 10 pence per share. Required: Prepare a statement of changes in equity for 2020 and a balance sheet as at 31 December 2020.
36.5A Futurescope Ltd has an authorised capital of 200,000 3% preference shares of £1 each and 500,000 ordinary shares of 50p each. After preparation of the income statement for 2020, the following balances remained in the ledger: £000 Share capital: fully paid-up: Preference 20 Ordinary 130 Loan notes 116 Share premium account General reserve 78 30 Retained profits at 1 January 2020 Net profit for 2020 282 43 Non-current assets 612 Current assets 191 Accounts payable 104 The directors recommend: (1) that £12,000 be transferred to general reserve, (i) payment of the preference dividend, (iii) an ordinary dividend of 10 pence per share. Required: Prepare a statement of changes in equity for 2020 and a balance sheet as at 31 December 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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36.5A Futurescope Ltd has an authorised capital of 200,000 3% preference shares of £1 each
and 500,000 ordinary shares of 50p each. After preparation of the income statement for 2020, the
following balances remained in the ledger:
£000
Share capital: fully paid-up:
Preference
20
Ordinary
130
Loan notes
116
Share premium account
General reserve
Retained profits at 1 January 2020
Net profit for 2020
78
30
282
43
Non-current assets
612
Current assets
191
Accounts payable
104
The directors recommend:
that £12,000 be transferred to general reserve,
(1)
(ii) payment of the preference dividend,
(iii) an ordinary dividend of 10 pence per share.
Required:
Prepare a statement of changes in equity for 2020 and a balance sheet as at 31 December 2020.
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