During the year ended 30 June 2016, the directors of Jindabyne Ltd declared and paid an interim

Question:

During the year ended 30 June 2016, the directors of Jindabyne Ltd declared and paid an interim dividend of $18 000 out of retained earnings. At the end of the year the financial statements showed a profit (before tax) of $460 000 out of which the directors made the following reserve transfers and tax liability.

Income tax expense

Reserves:

Plant replacement

General

$ 140000

40000

102000

The beginning balance of retained earnings was $15 000.

Required

A. Prepare journal entries relating to the above transactions.

B. Prepare the Retained Earnings account for Jindabyne Ltd for the year ended 30 June 2016.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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