Answer all questions The following information relating to Farasi ltd for the year ending 31st December 2019 has been availed. Profit before tax sh. 2,000,000 Tax 600,000 Preference dividends 300,000 Ordinary dividends 500,000 Ordinary share capital sh. 10 each 2,000,000 Preference share capital sh. 20 each 1,000,000 Share premium 800,000 Retained earnings 3,000,000 In the year year 2020 the following took place. There was a bonus issue of 1:5 on 1/4/2020 There was a rights issue of 1: 4 on 17/2020 at sh. 16. All the rights were taken up. An interim ordinary dividend of sh. 0.25 per share was declared on 12/10/2020. The dividend declared on 12/10/2020 was paid on 15/11/2020 Required: Compute the EPS for the year 2019. Prepare journal entries to record the transactions in 2020.
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The following information relating to Farasi ltd for the year ending 31st December 2019 has been availed.
Profit before tax sh. 2,000,000
Tax 600,000
Preference dividends 300,000
Ordinary dividends 500,000
Ordinary share capital sh. 10 each 2,000,000
Share premium 800,000
In the year year 2020 the following took place.
There was a bonus issue of 1:5 on 1/4/2020
There was a rights issue of 1: 4 on 17/2020 at sh. 16. All the rights were taken up.
An interim ordinary dividend of sh. 0.25 per share was declared on 12/10/2020.
The dividend declared on 12/10/2020 was paid on 15/11/2020
Required:
Compute the EPS for the year 2019.
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