Question 1 Part A Success Ltd. had the following equity balances as at July 1, 2020: Equity Share Capital (5,000,000 shares) Retained earnings General reserve $10,000,000 5,600,000 200,000 Total equity $15,800,000 Payment of interim dividend of two (2) cents per share to ordinary shareholders was made on February 28, 2021. A final dividend of three (3) cents per share for the 2020/2021 financial year had been declared on June 30, 2021, and will be paid on August 10, 2021. Profit after income tax for the year ended June 30, 2021 was $680,000. The directors approved a transfer of $20,000 from the retained earnings to the general reserve. Required: Prepare a statement of changes in equity for the year ended June 30, 2021. Show the movement for each of the equity items.

Question 1 Part A Success Ltd. had the following equity balances as at July 1, 2020: Equity Share Capital (5,000,000 shares) Retained earnings General reserve $10,000,000 5,600,000 200,000 Total equity $15,800,000 Payment of interim dividend of two (2) cents per share to ordinary shareholders was made on February 28, 2021. A final dividend of three (3) cents per share for the 2020/2021 financial year had been declared on June 30, 2021, and will be paid on August 10, 2021. Profit after income tax for the year ended June 30, 2021 was $680,000. The directors approved a transfer of $20,000 from the retained earnings to the general reserve. Required: Prepare a statement of changes in equity for the year ended June 30, 2021. Show the movement for each of the equity items.

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 18P

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