Dividends, reserves, retained earnings During the year ended 30 June 2022, the directors of Jindabyne Ltd declared and paid an interim dividend of $18,000 out of retained earnings. At the end of the year the financial statements showed a profit (before tax) of $460,000 out of which the directors made the following reserve transfers and tax liability. Income tax expense $140,000 Reserves Plant replacement General $40,000 $102,000 The beginning balance of retained earnings was $15,000. Required Prepare journal entries relating to the above transactions. Prepare the Retained Earnings account for Jindabyne Ltd for the year ended 30 June 2022.
Dividends, reserves, retained earnings During the year ended 30 June 2022, the directors of Jindabyne Ltd declared and paid an interim dividend of $18,000 out of retained earnings. At the end of the year the financial statements showed a profit (before tax) of $460,000 out of which the directors made the following reserve transfers and tax liability. Income tax expense $140,000 Reserves Plant replacement General $40,000 $102,000 The beginning balance of retained earnings was $15,000. Required Prepare journal entries relating to the above transactions. Prepare the Retained Earnings account for Jindabyne Ltd for the year ended 30 June 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step.
Transcribed Image Text:Dividends, reserves, retained earnings During the year ended 30 June 2022, the directors of Jindabyne Ltd declared and
paid an interim dividend of $18,000 out of retained earnings. At the end of the year the financial statements showed a profit
(before tax) of $460,000 out of which the directors made the following reserve transfers and tax liability. Income tax
expense $140,000 Reserves Plant replacement General $40,000 $102,000 The beginning balance of retained earnings was
$15,000. Required Prepare journal entries relating to the above transactions. Prepare the Retained Earnings account for
Jindabyne Ltd for the year ended 30 June 2022.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education