and 200,000 ordinary shares of 50p each. After preparation of the income statement for 2013, theshareholders' equity£000Share capital: fully paid-up:PreferenceOrdinaryLoan notes308020Share premium accountGeneral reserveRetained profits 2012Net profit for 2013Non-current assets3.271405019Current assetsAccounts payableThe directors recommend:(i) that £10,000 be transferred to general reserve,(ii) payment of the preference dividend,(iii) an ordinary dividend of 15%.Required:Prepare a statement of changes in equity for 2013 and a statement of financial position as at31 December 2013.

Working notes 1) Developing Ltd. Statement of changes in equity for 2013 Particulars Amount EUR…

Answered: 45.5A Developing Ltd has an authorised…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ILLUSTRATION 9:-Following are the figures extracted from the books of Midways Ltd. As on 30th June, 2015 : 5,000, 11% Preference shares of $ 100 each, 70 paid-up $ 3,50,000; 1,00,000 Equity shares of $ 10 each fully paid-up $ 10,00,000; Securities premium reserve $ 50,000 ; Capital redemption reserve $ 2,00,000 ; General reserve $ 3,00,000; Investments in government securities (market value $ 2,25,000) $2,50,000. Under the terms of the issue, the preference shares are redeemable on 30th September, 2015 on the following conditions: To sell the investments @ 90% of their market value. To create a statutory reserve by way of capitalisation as per the provisions of the Companies Act, 2013 leaving a balance of $ 25,000 in general reserve and $ 25,000 in securities premium reserve. To issue further equity shares, to back up the redemption at $ 11 per share payable as follows: $ 2 on application; $ 3.50 (including premium) on allotment and the balance as call money on 1** January, (i) (ii)…
QUESTION 2Naruto Bakery has a capital structure consisting of:42,000 issued and paid-up ordinary shares RM105,0005,000 issued and paid-up 10% Preference shares RM15,0008% Bonds (10-year maturity) RM30,000The balance of retained earning as at 1 January 2021 was RM75,000. The market priceper unit of the company’s financial instruments are as follows:Ordinary shares : RM2.50 (last dividend paid was RM0.50; growth rate is 5%Preference shares : RM3.008% Bonds : RM890.00 (par value RM1,000)The company is considering to invest in new project worth RM80,000. The floatationcost to sell more shares and bonds are 5%. The corporate tax rate 25%.You are required to calculate (show all workings):b. The company’s cost of debt, preference share, retained earnings and newissuance of ordinary shares.
15. Rock Company reported the following shareholders equity on December 31, 2022: Share capital, P50 par value 3,000,000 Share premium 600,000 Retained earnings 4,200,000 A 15% share dividend was declared and distributed on December 31, 2022 when entity’s share was selling at P65. What amount should be reported as share capital outstanding? Group of answer choices 3,450,000 3,585,000 3,615,000 4,185,000
Problem 6 (Adapted)Anna company presented the following account balances in the shareholders’ equity section for the year ended December 31, 2018: Preference share capital, 12% P50 par, P3,000,000, Ordinary share capital, P100 par, P6,000,000 and deficit, (P1,350,000). No dividends have been paid on the preference share since 2016. Determine the book value per share under the following conditions:a. Preference share is preferred as to assetsb. Preference share is preferred as to dividend
4. HAT Company provided the following information for the 2018: Total Assets at December 31 4,500,000 Share Capital at December 31 2,000,000 Share Premium at December 31 200,000 Treasury Share (at cost) 300,000 The debt-to-equity ratio (total liability over total shareholders’ equity) is 25% at December 31, 2018. What is the retained earnings unappropriated on December 31, 2018? Group of answer choices 2,300,000 1,700,000 1,400,000 1,100,000
Capital structure of PT. PNA now is: 2. Debt IDR 2.000.000.000,- IDR 3,000,000,000,- Preference shares. Ordinary shares IDR 5,000,000,000 Fees for each funding, debt 6%, Preferred stock 6%, Commont stock 10% and tax 50%. The amount of profit for ordinary shareholders that is currently Rp. 2,000,000,000 and 50% will be paid as dividends, and the rest will be withheld. The company will use the retained earnings as additional capital with the assumption that the capital composition and average are maintained its cost of capital. From the data above calculate: A. Weighted cost of capital B. Additional total capital so that the composition of new capital remains constant C. Calculate the new capital structure
13 - On 04.05.2020, our enterprise sold 1,000 of the shares of Kardemir A.Ş., which it had purchased for a temporary investment of 12 TL, for 15 TL each, and after paying a commission of 250 TL to the relevant bank, the remaining amount was deposited into the bank account of the enterprise. Which of the following calculations is incorrect? a) 653 Commission Expenses Hs. 250 TL Borrowed B) 110 Stocks Hs. 12.000 TL Creditor NS) 655 Securities Sales Profits Hs. 3.000 TL Creditor D) 102 Banks Hs. 14.750 TL Debtor TO) 645 Securities Sales Profits Hs. 3.000 TL Debtor
Naruto Bakery has a capital structure consisting of:42,000 issued and paid-up ordinary shares RM105,0005,000 issued and paid-up 10% Preference shares RM15,0008% Bonds (10-year maturity) RM30,000The balance of retained earning as at 1 January 2021 was RM75,000. The market priceper unit of the company’s financial instruments are as follows:Ordinary shares : RM2.50 (last dividend paid was RM0.50; growth rate is 5%Preference shares : RM3.008% Bonds : RM890.00 (par value RM1,000)The company is considering to invest in new project worth RM80,000. The floatationcost to sell more shares and bonds are 5%. The corporate tax rate 25%.You are required to calculate (show all workings):a. The number of shares and bonds to be issued

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