Question 8 - Equity Huntless Ltd has the following items in its accounting records for the current year: 1. 50,000 $3 issued and paid up ordinary shares 2. Dividends declared and paid during the year $35,000 3. Transfer from Retained earnings to General reserve $12,000 4. Net profit for the year $35,000 5. Opening Retained earnings $50,000 Required: Prepare journal entries to record items 1,2 and 3. Date / Accounts Debit Credit Show the note to the financial statements providing details of the movements in the Retained Earnings account during the year.
Question 8 - Equity Huntless Ltd has the following items in its accounting records for the current year: 1. 50,000 $3 issued and paid up ordinary shares 2. Dividends declared and paid during the year $35,000 3. Transfer from Retained earnings to General reserve $12,000 4. Net profit for the year $35,000 5. Opening Retained earnings $50,000 Required: Prepare journal entries to record items 1,2 and 3. Date / Accounts Debit Credit Show the note to the financial statements providing details of the movements in the Retained Earnings account during the year.
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
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 7E: Basic Income Statement The following are selected account balances of Rule Corporation at the end of...
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![Question 8 - Equity
Huntless Ltd has the following items in its accounting records for the current year:
1. 50,000 $3 issued and paid up ordinary shares
2. Dividends declared and paid during the year $35,000
3. Transfer from Retained earnings to General reserve $12,000
4. Net profit for the year $35,000
5. Opening Retained earnings $50,000
Required:
Prepare journal entries to record items 1,2 and 3.
Date / Accounts
Debit
Credit
Show the note to the financial statements providing details of the movements in the Retained
Earnings account during the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffeb04a03-ccbf-47a2-9462-edd901d39b16%2Fca60499a-1147-4b24-9aed-e7295dfe7d82%2Fb62qe2s_processed.png&w=3840&q=75)
Transcribed Image Text:Question 8 - Equity
Huntless Ltd has the following items in its accounting records for the current year:
1. 50,000 $3 issued and paid up ordinary shares
2. Dividends declared and paid during the year $35,000
3. Transfer from Retained earnings to General reserve $12,000
4. Net profit for the year $35,000
5. Opening Retained earnings $50,000
Required:
Prepare journal entries to record items 1,2 and 3.
Date / Accounts
Debit
Credit
Show the note to the financial statements providing details of the movements in the Retained
Earnings account during the year.
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