GABSA Pty Ltd issued 6 000 000 units of ordinary shares at R4 per share on 30 June 2020 and the annual financial year ended on 31 July every year. The retained eamings on 31 July 2022 amounted to R24 000 000. On 30 December 2018, a resolution was passed by the company director in the board meeting declaring a capitalisation issue of two-thirds to the existing shareholder while the shares were trading at R4.20. The closing balance of retained earnings in the statement of changes in equity of GABSA Pty Ltd for the reporting period ended 31 July 2023 is 4 8 000 000 OB 24 000 000 OC. 7 200 000 OD 16 000 000
GABSA Pty Ltd issued 6 000 000 units of ordinary shares at R4 per share on 30 June 2020 and the annual financial year ended on 31 July every year. The retained eamings on 31 July 2022 amounted to R24 000 000. On 30 December 2018, a resolution was passed by the company director in the board meeting declaring a capitalisation issue of two-thirds to the existing shareholder while the shares were trading at R4.20. The closing balance of retained earnings in the statement of changes in equity of GABSA Pty Ltd for the reporting period ended 31 July 2023 is 4 8 000 000 OB 24 000 000 OC. 7 200 000 OD 16 000 000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10P
Question
![GABSA Pty Ltd issued 6 000 000 units of ordinary shares at R4 per share on 30 June 2020 and the
annual financial year ended on 31 July every year. The retained eamings on 31 July 2022 amounted to
R24 000 000. On 30 December 2018, a resolution was passed by the company director in the board
meeting declaring a capitalisation issue of two-thirds to the existing shareholder while the shares were
trading at R4.20. The closing balance of retained earnings in the statement of changes in equity of
GABSA Pty Ltd for the reporting period ended 31 July 2023 is
4
8 000 000
OB
24 000 000
OC.
7 200 000
OD
16 000 000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d76c246-ca18-4413-bb6f-00f7dbdfc028%2F4178cf03-6cdb-4092-b6cb-18731f2ef406%2Fwj76ede_processed.jpeg&w=3840&q=75)
Transcribed Image Text:GABSA Pty Ltd issued 6 000 000 units of ordinary shares at R4 per share on 30 June 2020 and the
annual financial year ended on 31 July every year. The retained eamings on 31 July 2022 amounted to
R24 000 000. On 30 December 2018, a resolution was passed by the company director in the board
meeting declaring a capitalisation issue of two-thirds to the existing shareholder while the shares were
trading at R4.20. The closing balance of retained earnings in the statement of changes in equity of
GABSA Pty Ltd for the reporting period ended 31 July 2023 is
4
8 000 000
OB
24 000 000
OC.
7 200 000
OD
16 000 000
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