Question 1 36.1 The equity section of the balance sheet of Lyness Ltd as at 1 January 2020 was as follows: £000 Ordinary shares of 50p each Share premium General reserve Retained profits Total equity 170 110 50 402 732 During the year the following events occurred: In March 2020 the company paid the final dividend in respect of 2019 of 8 pence per share. In July 2020 it paid an interim dividend for 2020 of 2 pence per share. In November 2020 the company issued 100,000 new ordinary shares at a premium of 80 pence per share. The company reported a profit after tax of £93,000 for 2020 and made a transfer of £20,000 to general reserve. The directors also proposed a final dividend of 13 pence per share in respect of 2020. Required: Prepare the Statement of Changes in Equity for Lyness Ltd for the year ended 31 December 2020.

Question 1 36.1 The equity section of the balance sheet of Lyness Ltd as at 1 January 2020 was as follows: £000 Ordinary shares of 50p each Share premium General reserve Retained profits Total equity 170 110 50 402 732 During the year the following events occurred: In March 2020 the company paid the final dividend in respect of 2019 of 8 pence per share. In July 2020 it paid an interim dividend for 2020 of 2 pence per share. In November 2020 the company issued 100,000 new ordinary shares at a premium of 80 pence per share. The company reported a profit after tax of £93,000 for 2020 and made a transfer of £20,000 to general reserve. The directors also proposed a final dividend of 13 pence per share in respect of 2020. Required: Prepare the Statement of Changes in Equity for Lyness Ltd for the year ended 31 December 2020.

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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