The shareholders' equity section of Journal Limited is reproduced below. 1. Provide two plausible reasons for the

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The shareholders' equity section of Journal Limited is reproduced below.

Share capital Reserves Retained profits Total shareholders' equity 2016 $ 1400000 150000 250000 1800000 2015

1. Provide two plausible reasons for the reduction in retained profits between 2015 and 2016.
2. List three examples of what could be included in reserves.
3. Give possible reasons for the change in share capital.
4. The manager of Journal Limited is contemplating a bonus issue. What impact would a bonus issue ($100 000) have on total shareholders' equity?

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Financial Accounting An Integrated Approach

ISBN: 9780170349680

6th Edition

Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson

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