Ordinary share dividends (interim)32 000Repairs58 3204 996 0004 996 000Additional information1. The provision for bad debts must be increased by R3 680.2. Trading inventory according to stocktaking on 30 June 2020 amounted to R192 000.3. Capital repayments totalling R48 000 are payable on the unsecured loan from Box Bank in the next financialуear.4. Depreciation must be provided for as follows:a. On vehicles at 20% on costb. On equipment at 28% on cost5. A dividend of 20% of the investment value has been declared by Vac (Pty) Ltd. The dividend has not yetbeen received.6. The authorised share capital consists of 500 000 ordinary shares.7. Note: On 01 July 2019, the company increased the ordinary share capital by issuing 100 000 shares at R2each.8. A non-distributable asset replacement reserve of R200 000 must be created.9. Debentures consist of 20 000 13% debentures of R20 each, issued on 01 July 2019 and redeemable on 30June 2024. The debentures are secured by a first mortgage bond over land. Provision must be made for thecurrent year's interest.10. The company tax for the year amounted to R124 800.11. The directors declared a final dividend of 16 cents per share.Required:2.1 Prepare the statement of comprehensive income for UPhongolo Ltd.2.2 Prepare the Statement of changes in equity for UPhongolo Ltd. UPhongolo Limited Trial Balance as at 30 June 2020.Debit (R)Credit (R)Balance Sheet Accounts SectionOrdinary share capital800 000Retained earnings864 000Land and buildings1 983 200Vehicles (cost)160 000Equipment (cost)300 000Accumulated depreciation on vehicles28 000Accumulated depreciation on equipment56 000Long-term loan: Box Bank (14% p.a.)528 000Debentures (13% p.a.)400 000Investment in Vac (Pty) Ltd96 000Inventory (01 July 2019)224 000Debtors control256 000Provision for bad debts5 120Bank228 520Creditors control108 520SARS: Company tax70 000Nominal accounts SectionSales2 110 160Purchases916 000Sales returns20 000Purchases returns24 000Customs duty21 600Carriage on purchases70 000Carriage on sales12 000Sundry expenses59 480Salaries256 000Motor expenses7 200Interest on loan73 920Discount allowed7 760Commission income72 200Directors' fees120 000Auditor's fee24 0002.

1. Dividend Income 96000*20% = 19200 Debtors Account Dr 19200…

Answered: Prepare the statement of comprehensive…

Prepare the statement of comprehensive income for UPhongolo Ltd. Prepare the Statement of changes in equity for UPhongolo Ltd.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9E

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