Question
The following information has been extracted from ABC company annual report for the year 2020.You are required to prepare owners equity statement of ABC Company.
The following information has been extracted from ABC company annual report for the year 2020.You are required to prepare owners equity statement of ABC Company.
Authorized share capital of $200,000 of $10 each of which 70% shares are issued and paid up at $20.
Beginning balance of retained earnings was $150,000. Current year profit and loss and other comprehensive income show a profit of $22500, but there was an amount of $2000 for depreciation.
The company has some noncurrent assets whose market value is $25000. However these assets were purchased for $52,000 and accumulated depreciation to date was $15000.
Due to change in accounting policy the company need to adjust $2000 as loss resulted from previous operation. The company also recovered $2000 which was previously written off.
The company declared 10% Stock dividend and the market price was $20 per share and cash dividend 5%.
Treasury stock was $10,000.
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