Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1 Part A Success Ltd. had the following equity balances as at July 1, 2020: Equity Share Capital (5,000,000 shares) Retained earnings General reserve
Question 1 Part A Success Ltd. had the following equity balances as at July 1, 2020: Equity Share Capital (5,000,000 shares) Retained earnings General reserve $10,000,000 5,600,000 200,000 Total equity $15,800,000 Payment of interim dividend of two (2) cents per share to ordinary shareholders was made on February 28, 2021. A final dividend of three (3) cents per share for the 2020/2021 financial year had been declared on June 30, 2021, and will be paid on August 10, 2021. Profit after income tax for the year ended June 30, 2021 was $680,000. The directors approved a transfer of $20,000 from the retained earnings to the general reserve. Required: Prepare a statement of changes in equity for the year ended June 30, 2021. Show the movement for each of the equity items. (10 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started