Question 1 Part A Success Ltd. had the following equity balances as at July 1, 2020: Equity Share Capital (5,000,000 shares) Retained earnings General reserve $10,000,000 5,600,000 200,000 Total equity $15,800,000 Payment of interim dividend of two (2) cents per share to ordinary shareholders was made on February 28, 2021. A final dividend of three (3) cents per share for the 2020/2021 financial year had been declared on June 30, 2021, and will be paid on August 10, 2021. Profit after income tax for the year ended June 30, 2021 was $680,000. The directors approved a transfer of $20,000 from the retained earnings to the general reserve. Required: Prepare a statement of changes in equity for the year ended June 30, 2021. Show the movement for each of the equity items.

Question 1 Part A Success Ltd. had the following equity balances as at July 1, 2020: Equity Share Capital (5,000,000 shares) Retained earnings General reserve $10,000,000 5,600,000 200,000 Total equity $15,800,000 Payment of interim dividend of two (2) cents per share to ordinary shareholders was made on February 28, 2021. A final dividend of three (3) cents per share for the 2020/2021 financial year had been declared on June 30, 2021, and will be paid on August 10, 2021. Profit after income tax for the year ended June 30, 2021 was $680,000. The directors approved a transfer of $20,000 from the retained earnings to the general reserve. Required: Prepare a statement of changes in equity for the year ended June 30, 2021. Show the movement for each of the equity items.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Question 8 At the end of 2020, Diego Corporation reported a $40,000 balance in its common share account (stated value $5 per share). The treasury share account showed $720 (cost $6 per share). No dividends were paid during the first two years. During 2020 the company declared and paid a cash dividend at $1.50 per share. Calculate the total amount of the 2020 cash dividend.
Question 33 ACME Incorporated had the following balances for its equity accounts on the company's audited statement of financial position at December 31, 2019: Shareholder's Equity Paid in on capital shares Preferred [8%, cumulative, 30,000 authorized, issued & outstanding $ 300,000 Common [unlimited authorized, 550,000 issued & outstanding] Contributed surplus 865,000 216,250 $ 1,381,250 Retained earnings Accumulated other comprehensive income Total shareholder's equity 432,500 216,250 $ 2,030,000 Information for 2020: Net income was Gain on disposal of bonds Dividends declared and paid on preferred shares Issued 3,000 common shares Foreign translation gain on subsidiary Comprehensive income $ 350,000 135,000 15,000 5,000 87,500 262,500 Required: Prepare ACME's statement of changes in equity at December 31, 2020 in good form.
Problem 4 On December 29, 2018, Blue Company was registered at the Securities and Exchange Commission with 100,00 authorized shares of P100 par value. The following were Blue's transactions: December 29, 2018 May 14, 2019 August 9, 2019 December 31, 2019 Issued 40,000 shares at P105 per share. Purchased 600 of its ordinary shares at P110 per share. 400 treasury shares were resold at P95 per share. Profit for 2019 is P830,000. Dividends paid P200,000. 34. What is the total outstanding shares? 35. What is the balance of treasury shares? 36. How many shares are entitled to receive dividends? 37. What is the total shareholders' equity? Problem 5 Partners A & B have capital balances of P600,000 and P400,000 and share profits and losses in the ratio of 3:2, respectively, before the admission of C. With the consent of B, A sells one-half of his equity to C, with C paying A the amount of P350,000. 38. What is A's capital balance after the admission of C? 39. What is the total partnership…
Journal entry worksheet 1 Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2021, the company's board of directors declares a 20 percent stock dividend. This stock dividend will be distributed on January 20, 2022 to the stockholders of record on January 15, 2022. The ...market price of the company's stock is $10 per share on December 31 2021 Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Retained earnings Common stock dividend distributable Paid in capital in excess of par value Clear entry View general journal Record entry Assessme
ABC Corporation provided you the following information on January 01, 2021: Share capital, P10 par P4,000,000 Share premium 800,000 Retained earnings 3,500,000 Share transactions for the year 2021: Feb 10 – Declared 10% share dividend. Market value of each share – P20 March 10 – Issued and distributed share dividends declared on February 10 June 15 - Declared 20% share dividend. Market value of each share – P25 July 01 - Issued and distributed share dividends declared on June 15 December 03 – Declared cash dividend of P2 per share Retained earnings for the year 2021 would decrease by: a.3,616,000 b.2,336,000 c.3,616,000 d.1,056,000
Problem 3-17 Sunrise Company reported the following shareholders' equity on December 31, 2019: Preference share capital, 12% cumulative and fully participating P100 par, authorized 20,000 shares, issued 15,000 shares of which 1,000 shares are in the treasury and the last dividend was in 2014 1,500,000 110,000 200,000 130,000 Treasury preference shares, at cost Subscribed preference share capital Subscription receivable - preference Ordinary share capital, par value P100, authorized 50,000 shares, issued 30,000 shares of which 1,000 are reacquired Treasury shares - ordinary Subscribed ordinary share capital Subscription receivable - ordinary Share premium Retained earnings 968,000 Appropriated Retained Earnings 680,000 3,000,000 70,000 500,000 200,000 300,000 Required: Compute the book value per ordinary share and per preference share on December 31, 2019.
Problem 11-2A (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders' equity at December 31, 2019. Common stock-$15 par value, 100,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,500 shares of its own stock at $20 cash per share. January 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 1,688 of its treasury shares at $24 cash per share. August 22 Sold 2,812 of its treasury shares at $17 cash per share. September 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the…
The following financial information is available for Blossom Ltd. as at December 31 (in thousands, except for per share amounts): 2021 2020 2019 Profit $1,721 $1,854 $2,317 Preferred share dividends (total) $73 $43 $30 Weighted average number of common shares 437 435 436 Dividends per common share $2.50 $2.25 $2.10 Market price per common share $43.00 $49.75 $56.25 (a)Calculate the earnings per share, price-earnings ratio, and payout ratio for the common shareholders for each of the three years. 2021 2020 2019 Earnings per share (Round answer to 2 decimal places, e.g. 5.25.) $enter Earnings per share in dollars rounded to 2 decimal places $enter Earnings per share in dollars rounded to 2 decimal places $enter Earnings per share in dollars rounded to 2 decimal places Price-earnings ratio (Round answer to 1 decimal place, e.g. 15.5.) enter Price-earnings ratio in times rounded to 1…
View Policies Current Attempt in Progress Wildhorse Company reported retained earnings at December 31, 2021, of $318,500. Wildhorse had 198,500 shares of common stock outstanding at the beginning of 2022. The following transactions occurred during 2022. 1. 2. 3. A cash dividend of $0.70 per share was declared and paid. A 10% stock dividend was declared and distributed when the market price per share was $14 per share. Net income was $283,000. Compute the ending balance in retained earnings at the end of 2022. Retained earnings SA
Recording Stock Dividends and Stock Splits The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10 par, 30,000 shares outstanding $300,000 Paid-in capital in excess of par 102,000 Retained earnings 200,000 The fair value of its stock is $18 per share. Prepare journal entries for the following three separate scenarios. a. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. b. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. Of the 3,000 stock dividend shares, 2,800 shares are whole shares and 200 shares are fractional shares. It is the company’s policy to pay out fractional shares in cash. c. The company declares (November 1, 2020) and issues (November 20, 2020) a stock split effected in the form of a 100% stock dividend. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical…
15 Masters Inc. Partial Balance Sheet December 31, 2020 Shareholders' Equity Contributed Capital: Preferred shares, $1.00, 100,000 shares authorized, 20,000 shares issued $100,000 Common shares, unlimited number of shares authorized, 100,000 shares issued 350,000 Total contributed capital 450,000 Retained earnings 170,000 Total shareholders' equity $620,000 Assume that the preferred shares are not cumulative and that no dividends have been declared in 2017, 2018, and 2019. Prepare the journal entry…
View Policies Current Attempt in Progress The shareholders' equity accounts of Sandhill Inc. at December 31, 2023, are as follows: Preferred shares, $3 noncumulative, unlimited number authorized, 5,000 issued Common shares, unlimited number authorized, 140,000 issued Retained earnings Accumulated other comprehensive loss Sandhill has a 35% income tax rate. During the following fiscal year ended December 31, 2024, the company had the following transactions and events: Feb. July Dec. 1 Repurchased 10,000 common shares for $40,000. Announced a 2-for-1 preferred stock split. The market price of the preferred shares at the date of announcement was $150. 12 1 $500,000 700,000 550,000 (48,000) Dec. 18 Dec. 31 Declared the annual cash dividend ($1.50 post-split) to the preferred shareholders of record on January 10, 2025, payable on January 31, 2025, Declared a 10% stock dividend to common shareholders of record at December 20, distributable on January 12. 2025. The fair value of the common…