The directors of Pumpkin Ltd provide you with the following financial information for the period ended 31
Question:
The directors of Pumpkin Ltd provide you with the following financial information for the period ended 31 December 2020: selling expense $76050; interest expense $29250; legal fees $4875; administrative expense $60 450; income tax expense $31200; cost of sales $370500; ordinary share capital (20 000 shares issued) $156000; sales revenue $604500; other revenue $146250; dividends declared (for current period) $15600; retained earnings at beginning $226200.
Required
(a) Prepare a statement of profit or loss for Pumpkin Ltd for the period ended 31 December 2020.
(b) Determine the closing balance of retained earnings as at 31 December 2020.
Step by Step Answer:
a b Closing balance of retained earnings 226 200 178 425 15 600 389 025 Income Sales r...View the full answer
Accounting Business Reporting For Decision Making
ISBN: 9780730369325
7th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond
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