The equity section of the balance sheet of Skipe Ltd as at 31 July 2024 is as
Question:
The equity section of the balance sheet of Skipe Ltd as at 31 July 2024 is as follows:
During the year ended 31 July 2024, the following events had taken place:
(i) A 1-for-6 rights issue of ordinary shares had been made in September 2023 at a price of £1.05 per share. The rights had been taken up in full.
(ii) A 1-for-5 bonus issue of ordinary shares had been made in November 2023 using the share premium account.
(iii) In February 2024 ordinary dividends totalling £19,000 had been paid, and the preference dividend for the year ended 31 July 2024 had been paid in full.
(iv) The final profit after tax, reported in the income statement for the year ended 31 July 2024, was £66,000.
(v) The directors transferred £15,000 from retained earnings to general reserve.
Required:
Prepare the statement of changes in equity for Skipe Ltd for the year ended 31 July 2024.
Step by Step Answer:
Frank Woods Business Accounting An Introduction To Financial Accounting
ISBN: 9781292365435
15th Edition
Authors: Alan Sangster, Lewis Gordon, Frank Wood