QUESTION 2 Prepare the Statement of Changes in Equity for the year ended 28 February 2021.INFORMATIONThe information given below was extracted from the accounting records of Preston Traders, a partnership business withPresley and Tony as partners.Extract from the trial balance of Preston Traders on 28 February 2021DebitCreditRRCapital: Presley600 000Capital: Tony400 000Current alc: Presley (01 March 2020)40 000Current a/c: Tony (01 March 2020)50 000Drawings: Presley340 000Drawings: Tony360 000 (a)The Statement of Comprehensive Income reflected a net profit of R900 000 on 28 February 2021.(b)The partners are entitled to interest at 12% p.a. on their capital balances.Note: Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital byR200 000 on 01 September 2020. These capital changes have been recorded.(c)The partners are entitled to the following monthly salaries for each of the two six-month periods:01 March 2020 to 31 August 202001 September 2020 to 28 February 2021PresleyR16 000R17 000TonyR15 000R16 000(d)Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been takeninto account.(e)The remaining profit/loss must be shared between Presley and Tony in the ratio 3:2 respectively.

Answered: QUESTION 2 Prepare the Statement of…

Business

Accounting

QUESTION 2 Prepare the Statement of Changes in Equity for the year ended 28 February 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Match the words with the term. Question 6 options: 12345 financial need 12345…

A: Working Capital Working capital is refer as the capital of the business which are used in day to day…

Q: Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on…

A: The ratio is the technique used by the prospective investor or an individual or strategist to read…

Q: Nature of van Dijks 2018/2019 earnings

A: Bob van Dijk -Former CEO of Naspers.

Q: hich of the following is a current liability? Borrowings due in 18 months Share capital…

A: There are two types of liabilities one is current liabilities and other are long term depending on…

Q: 31- Which of the statements formulated below explains the method of calculating profit/loss through…

A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…

Q: Calculate Earning Per Share You remember that the New York Bakery retired 224,812 shares in 2021.…

A: Return on stockholder's equity (ROE) is a financial measure that shows percentage of return owners…

Q: how was the trading of uwmc company in march 2022?

A: UMWC holdings stands for United Wholesale Mortgage, located in Pontiac, Michigan, is a national…

Q: The stockholders' equity section of Cheyenne Corp. at December 31, 2019, included the following: 5%…

A: Dividend is a amount distributed by the organization from the profit earned. The company declares…

Q: 1. How is the exchange of common stock for long-term term debt shown on the SCF? 2. How does the…

A: A Statement of Cash Flows shows the amount of cash and cash equivalents that flow into and from the…

Q: Which of the following ratios is used by the company to determine its ability to pay currently…

A: Some of the financial ratios are as follows, Accounts receivable turnover Equity ratio Cash Ratio…

Q: would represent an example of what type of analysis:

A: Financial statements: It refers to the end reports prepared by n organization to report the…

Q: Required information Problem 15-3A (Algo) Debt Investments in available-for-sale securities;…

A: Answer:- Debt investment meaning:- The acquisition of a significant amount of debt with the…

Q: Which of the following expenses would most likely be reported as a separate line item on the…

A: The statement of activities is a financial statement used by not-for-profit organizations and…

Q: QUESTION 5 REQUIRED 5.1 Use the information provided below to calculate the following ratios for…

A: Financial Statements- Every entity prepares the statement related to assets, liabilities, cash,…

Q: Complete this question by entering your answers in the tabs below. Reg A and B Req C Req D Req E to…

A: Debt ratio = total liabilities/total assets Debt equity ratio = total liabilities/total equity

Q: None

A: Current Situation AnalysisGiven Tesla's low D/E ratio of 0.0757, the company has room to increase…

Q: 4c. Prepare the statement of retained earnings (cash dividends during 2019 were $26,000) for 2019.…

A: Retained Earning :— The amount of profit the company has left over after paying all its direct…

Q: Calculate the following ratios a. Liquid ratio.

A: Liquid ratio : The ratio which is calculated for ascertaining or determining the liquidity…

Q: d ex

A: Authorised Preference share = 10000 Issued preference share = 4000 face Value of preference share =…

Q: O What happened to the company's return on assets and equity for the pasy five (5) years? 2016 2017…

A: The return on investment indicates the return on the amount of investment in assets, It also…

Q: Investors should hold the stock one day before the payment ex-dividend declaration date to receive…

A: DIVIDEND DATE Declaration date is the date when the board of director announce the payment for…

Q: Access the FASB Accounting Standards Codification at the FASB website and select Basic View for free…

A: Financial Accounting Standards Board (FASB): FASB is the organization which creates, develops, and…

Q: Category Prior Year Current Year Accounts payable 3,185.00 5,915.00 Accounts receivable 6,960.00…

A: Cash flow from operating activities (CFOA) is like the money flow generated or spent on the…

Q: how was the trading of FB company in march 2022?

A: Stock trading is the practice of buying and selling stocks on a regular basis in an attempt to time…

Q: Why is the opening stock for the next reporting period the same as the closing stock from the…

A: Opening stock is the quantity of goods kept by the business firm during the start of any…

Q: Journal entry worksheet

A: Introduction : Issue of shares is one of the important source of finance being used in business. It…

Q: Prepare a comparative balance sheet and discuss the operational performance of the Bank.

A: Comparative Balance sheet helps investors, shareholders and other users of balance sheet to…

Q: NWG.L History Daily 11-Mar-2019-11-Mar-2020 Exchange Date 11-Mar-2020 10-Mar-2020 09-Mar-2020…

A: To calculate how much you gained or lost per day for a stock, subtract the opening price from the…

Q: Suppose the following financial information is available for Walgreens. (in millions) Average common…

A: Payout ratio is the ratio between common dividends by net income. It is calculated by dividing…

Q: Preston Traders on 28 February 2021 Capital: Presley Capital: Tony Current a/c: Presley (01 March…

A: Answer:- Statement of change in equity:- A statement of change in equity sometimes also called as…

Q: What is your company’s common and preferred stock par or stated value? 2019

A: Common stock: Common stock is an equity ownership in organization. Common stockholders have a…

Q: 4. Consolidated retained earnings at December 31, 2019 5. Consolidated net income for 2019 6.…

A: Pub Corporation's retained earnings at December 31, 2019$2,670,000Sub Corporation's retained…

Q: A) Prepare a statement of comprehensive income for the year ended 31 December 2019 for ABC. B)…

A: The income statement is one of the financial statement that is also known as profit or loss account…

Q: izontal an

A: Vertical Analysis of Statement of Changes in Debt and Financial Asset Year ended March 31, 2020…

Q: Why is the distinction between current and long term liabilities important? What would you say about…

A: The Assets are the resource that is Paramount to generate revenue. the classifications of assets…

Q: Exercise 11-5 (Algo) Analyzing impact of stock issuance transactions LO P1 Analyze each transaction…

A: The shares issued at more than par value or stated value are said to be adding value to additional…

Q: how was the trading of AT&T company in April 2022?

A: AT&T is an American telecommunication company and is the largest provider of mobile telephone…

Q: Co. A had the following accounts and account balances for its investiment in 2,000 shares of Ford Co…

A: Trading securities: It is a type of securities purchased by an investor for the short term. The…

Q: Complete the following descriptions by selecting the appropriate option. 1. Debt securities reflect…

A: Debt Securities: Debt securities represent loans made by an investor to an entity, typically a…

Q: EXPLAIN THE RESULT OF EACH ITEMS

A: Balance sheet is the statement of assets, liabilities and equity which means the value of the these…

Q: Where would someone go to find the quarterly and annual reports for a publicly traded company?

A: Publicly listed companies are required to report their earnings and financial position on quarterly…

Q: Item Prior year Current year Accounts payable 8,182.00 7,768.00 Accounts receivable 6,011.00…

A: Begin by calculating the total liabilities and equity of the firm. Then, determine the cash amount…

Q: iability and Equity Classification Select from the option list provided the appropriate balance…

A: Liabilities are accumulated financial obligations that result from past events that are expected to…

Question

(a)
The Statement of Comprehensive Income reflected a net profit of R900 000 on 28 February 2021.
(b)
The partners are entitled to interest at 12% p.a. on their capital balances.
Note: Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital by
R200 000 on 01 September 2020. These capital changes have been recorded.
(c)
The partners are entitled to the following monthly salaries for each of the two six-month periods:
01 March 2020 to 31 August 2020
01 September 2020 to 28 February 2021
Presley
R16 000
R17 000
Tony
R15 000
R16 000
(d)
Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken
into account.
(e)
The remaining profit/loss must be shared between Presley and Tony in the ratio 3:2 respectively.

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The financial year stating up to...........
What is the Financial Analysis of each year?
View Policies Current Attempt in Progress Retained earnings is increased by each of the following except O prior period adjustments. O some disposals of treasury stock. Chall of these increase retained earnings. O net income. eTextbook and Media Save for Later Attempts: 0 of 2 %23 24 2 3 4. 8 W e y h a
Question 6 (this question has 2 parts) Gordon Industries Ltd has provided you with the following information: 2019 2020 2021 Debt to Equity 10.5% 23.4% 36.2% Gross Profit margin 30.2% 36.5% 35.3% Net profit margin 19.5% 17.6% 13% Return on Equity 15.1% 17.5% 16.2% Asset Turnover (times) 0.71 0.82 1.41 Return on Assets 13.8% 14.4% 18.3% Interest coverage ratio 4 times 3 times 2.5 times a) Advise Gordon Industries of the relationship between Return on Assets, Asset Turnover and Net Profit Margin. Comment on the profitability position of Gordon and any advice you consider relevant. b) Advise the shareholders of Gordon Industries on the financial structure of the company.
Finance Question
Why is the statement of stockholders equity prepared before the June 39, 29Y9 balance sheet?
Find earnings per share 2019
Name the five mandatory components of a complete set of financial statements according to IAS 1 "Presentation of Financial Statements". What additional reporting is required of entities whose shares or securities are publicly traded? В I PrtSc F6 F7 F8 F9 F10 F11 F12 II 立

Pet Boutique Corp. reported $4,549,230 of profit for 2023. On November 2, 2023, it declared and paid the annual preferred dividends of $261,880. On January 1, 2023, Pet Boutique had 73,500 and 567.000 outstanding preferred and common shares, respectively. The following transactions changed the number of shares outstanding during the year: Feb. 1 Declared and issued a 20% common share dividend.. Apr.30 Sold 119,130 common shares for cash. Sold 49,410 preferred shares for cash. Sold 37,800 common shares for cash. May 1 Oct. 31 a. What is the amount of profit available for distribution to the common shareholders? Earnings available to common shareholders b. What is the weighted average number of common shares for the year? Weighted average outstanding shares
Question-based on, "calculate earnings". I have tried but no answer.
View Policies Current Attempt in Progress The following information is available for Martinez Company at December 31, 2020, regarding its investments. Securities 500 shares of Runner Corporation common stock 7,400 shares of Sher-tor Corporation preferred stock (a) Prepare the adjusting entry (if any) for 2020, assuming the securities are classified as trading. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Unrealized Holding Gain or Loss - Equity Fair Value Adjustment Cost Fair Value $24,000 $39,000 593,000 564,000 $617,000 $603,000 Account Titles and Explanation Save for Later Debit (b) Prepare the adjusting entry (if any) for 2020, assuming the securities are classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is…
22 - Which of the following accounts is not included in the opening record? A) linked securitiesB) net profit for the periodC) accumulated depreciationD) long term Bank loansE) ordinary income and profits