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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Don't give answer in image format
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
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