The following was obtained from the ledger of Valediction Ltd as at 30 June 2020. End-of-year adjustments

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The following was obtained from the ledger of Valediction Ltd as at 30 June 2020.

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End-of-year adjustments 

1. Income tax expense of $15 400 is to be recognised. The company pays tax in one instalment annually.
2. Declare a dividend on the preference shares for the current year.
3. Declare a final dividend on ordinary shares of $3000. No ratification is required at the annual meeting.
4. Transfer $5000 from the general reserve to retained earnings.

Required

Prepare a statement of changes in equity for Valediction Ltd for the year ended 30 June 2020.

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Financial Accounting

ISBN: 9780730363217

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield

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