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Foley Corporation has the following capital structure at the beginning of the year: Share capital ordinary, £10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Share premium ordinary Retained earnings Total equity £ 400,000 110,000 440,000 £950,000 Record the following transactions which occurred consecutively. (1) A total cash dividend of £90,000 was declared and payable to shareholders of recom (2) A 10% ordinary share dividend was declared. (3) Assume that net income for the year was £150,000. Calculate the balance of Retained Earnings at the end of the year.

Foley Corporation has the following capital structure at the beginning of the year: Share capital ordinary, £10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Share premium ordinary Retained earnings Total equity £ 400,000 110,000 440,000 £950,000 Record the following transactions which occurred consecutively. (1) A total cash dividend of £90,000 was declared and payable to shareholders of recom (2) A 10% ordinary share dividend was declared. (3) Assume that net income for the year was £150,000. Calculate the balance of Retained Earnings at the end of the year.

FINANCIAL ACCOUNTING
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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Foley Corporation has the following capital structure at the beginning of the year: Share capital-ordinary, £10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Share premium ordinary. Retained earnings Total equity £400,000 110,000 440,000 £950,000 Record the following transactions which occurred consecutively. (1) A total cash dividend of £90,000 was declared and payable to shareholders of record. (2) A 10% ordinary share dividend was declared. (3) Assume that net income for the year was £150,000. Calculate the balance of Retained Earnings at the end of the year.
Transcribed Image Text:Foley Corporation has the following capital structure at the beginning of the year: Share capital-ordinary, £10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Share premium ordinary. Retained earnings Total equity £400,000 110,000 440,000 £950,000 Record the following transactions which occurred consecutively. (1) A total cash dividend of £90,000 was declared and payable to shareholders of record. (2) A 10% ordinary share dividend was declared. (3) Assume that net income for the year was £150,000. Calculate the balance of Retained Earnings at the end of the year.
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