Shareholder equity

Hide Ltd, a company whose principal interests are in the manufacture of fine leather shoes and

handbags, was formed on 1 January 2013. Its financial year is a calendar year. Prior to the 2016

period, Hide Ltd had issued 110 000 ordinary shares as follows:

? 95 000 ?30 shares were issued for cash on 1 January 2013

? 5000 shares were exchanged on 1 February 2014 for a patent that had a fair value at date of

exchange of ?240 000

? 10 000 shares were issued on 13 November 2015 for ?50 per share

At 1 January 2016, Hide Ltd had a balance in its retained earnings account of ?750 000, while the

general reserve and the asset revaluation surplus had balances of ?240 000 and ?180 000,

respectively. The purpose of the general reserve is to reflect the need for the company to regularly

replace certain pieces of the shoe-making machinery to reflect technological changes

During the 2016 financial year, the following transactions occurre: