Question
The equity section of the statement of financial position of Specter Ltd at 30 June 2021 discloses: 2021 Share Capital 1,800,000 General Reserve 50,000 Revaluation
The equity section of the statement of financial position of Specter Ltd at 30 June 2021 discloses:
2021 | |
Share Capital | 1,800,000 |
General Reserve | 50,000 |
Revaluation Reserve | 120,000 |
Retained Earnings | 340,000 |
During the financial year:
- Specter Ltd issued 50,000 shares at $1 each during the year
- Profit for the year was $150,000
- Dividends paid during the year were $40,000
- A transfer of $200,000 was made from retained earnings to general reserve during the year
- Land was revalued by $400,000 during the year
- Tax rate was 30%
The balances of the equity accounts at 30 June 2022 are:
a) | Share capital $1,775,000; General Reserve $250,000; Revaluation Surplus $520,000; and Retained Earnings $250,000 | |
b) | Share capital $1,850,000; General Reserve $50,000; Revaluation Surplus $400,000; and Retained Earnings $250,000 | |
c) | Share capital $1,850,000; General Reserve $250,000; Revaluation Surplus $520,000; and Retained Earnings $250,000 | |
d) | Share capital $1,850,000; General Reserve $250,000; Revaluation Surplus $400,000; and Retained Earnings $250,000 |
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