The following information relating to the year ending 30 June 2020 for Penrith Ltd has been obtained
Question:
The following information relating to the year ending 30 June 2020 for Penrith Ltd has been obtained from the company’s records.
On 30 June 2020, the directors decided to:
1. recommend a final cash dividend of $7000, to be ratified by shareholders at the annual general meeting
2. write off development costs
3. increase the general reserve by $1000
4. provide for an estimated tax expense and current tax liability of $7500 on 2019–20 profits.
Required
Record the above adjustments in ledger accounts and prepare a statement of changes in equity for Penrith Ltd for the year ended 30 June 2020.
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Related Book For
Financial Accounting
ISBN: 9780730363217
10th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield
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