Question
Exercise 9.13 Dividends, reserves, retained earnings During the year ended 30 June 2019, the directors of Jindabyne Ltd declared and paid an interim dividend of
Exercise 9.13
Dividends, reserves, retained earnings
During the year ended 30 June 2019, 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 $140000
Reserves:
Plant Replacement $40000
General $102000
The beginning balance of retained earnings was $15 000.
Required
- Prepare journal entries relating to the above transactions.
- Prepare the Retained Earnings account for Jindabyne Ltd for the year ended 30 June 2019.
Exercise 9.13
Dividends, reserves, retained earnings
During the year ended 30 June 2019, 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 $140000
Reserves:
Plant Replacement $40000
General $102000
The beginning balance of retained earnings was $15 000.
Required
- Prepare journal entries relating to the above transactions.
- Prepare the Retained Earnings account for Jindabyne Ltd for the year ended 30 June 2019.
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
