Prepare the statement of changes in equity for the year ended 31 December 2019. The total column is not required. Show all calculations.
Prepare the statement of changes in equity for the year ended 31 December 2019. The total column is not required. Show all calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![QUESTION 1
Ngunzi Limited is a company that was incorporated in 2007. The company has the following
authorised and issued share capital:
Authorised share capital
2 000 000 ordinary shares at R1 per share
1 000 000 6% preference shares at R2 per share
200 000 8% convertible preference shares at RO.50 per share
Issued share capital as at 1 January 2019
200 000 ordinary R1 shares issued at R2 per share
50 000 6% R2 preference shares issued at par
100 000 8% RO.50 convertible preference shares issued at par
Additional information:
On 1 January 2019 the balance of the share premium account was R30 000 and retained earnings
was R675 000. The financial year-end of the company is 31 December.
On 30 June 2019, an interim dividend of 20 cents per share was declared for the ordinary
shareholders.
On 1 September 2019, Mr Ntebo, a sworn appraiser re-valued the building to be R450 000 greater
than the current book value
On 1 October 2019, 25% of the authorised 8% convertible preference shares were allotted to
shareholders at R2.50 per share.
At the end of the year, a final dividend of 40 cents per share was declared.
The profit for the year was R534 000 and the tax rate is 28%.
REQUIRED
Prepare the statement of changes in equity for the year ended
31 December 2019. The total column is not required.
Show all calculations.
1.1
Communication skills – structure and layout](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd4ddb091-49a9-4c3e-90fa-8734953ab9ef%2F0076ed02-2fe9-4f22-874b-6ea2db2223dc%2Fyvhpwah_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 1
Ngunzi Limited is a company that was incorporated in 2007. The company has the following
authorised and issued share capital:
Authorised share capital
2 000 000 ordinary shares at R1 per share
1 000 000 6% preference shares at R2 per share
200 000 8% convertible preference shares at RO.50 per share
Issued share capital as at 1 January 2019
200 000 ordinary R1 shares issued at R2 per share
50 000 6% R2 preference shares issued at par
100 000 8% RO.50 convertible preference shares issued at par
Additional information:
On 1 January 2019 the balance of the share premium account was R30 000 and retained earnings
was R675 000. The financial year-end of the company is 31 December.
On 30 June 2019, an interim dividend of 20 cents per share was declared for the ordinary
shareholders.
On 1 September 2019, Mr Ntebo, a sworn appraiser re-valued the building to be R450 000 greater
than the current book value
On 1 October 2019, 25% of the authorised 8% convertible preference shares were allotted to
shareholders at R2.50 per share.
At the end of the year, a final dividend of 40 cents per share was declared.
The profit for the year was R534 000 and the tax rate is 28%.
REQUIRED
Prepare the statement of changes in equity for the year ended
31 December 2019. The total column is not required.
Show all calculations.
1.1
Communication skills – structure and layout
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