The following transactions occurred in the 2016 financial year. The opening balance of retained profits was $20

Question:

The following transactions occurred in the 2016 financial year. The opening balance of retained profits was $20 000.

a. Shares were issued (4000 at $4 each).

b. $2500 worth of inventory was purchased on credit and has not yet been sold.

c. The company made a net loss for the period of $4250.

d. The company moved $550 from the general reserve to retained profits.

e. Dividends of $5000 were declared and paid.

Required:
1. What is the closing balance of retained profits?
2. How much did total shareholders' equity increase during the year?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Financial Accounting An Integrated Approach

ISBN: 9780170349680

6th Edition

Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson

See More Books

Question Posted: Jan 24, 2024 01:00 AM

See More Questions

Q1. The following transactions occurred during Year 1, the first year of business, for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits....
Q1. The following transactions occurred during Year 2, the second year of business for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits....
A. J. Smith Company started business on January 1, 2016, and the following transactions occurred in its first year: 1. On January 1, the company issued 12,000 common shares at $25 per share. 2. On...
Solve the given equation over the real numbers by completing the square. If there are more than one solution, separate them by a comma. If there is no real solution, enter DNE (short for does not...
(a) Show that when a frame supports a pulley at A, an equivalent loading of the frame and of each of its component parts can be obtained by removing the pulley and applying at A two forces equal and...
Given the product structure tree below for end-product P, 1. Determine the number of units of S, T, U, and V needed if 10 units of end product P are to be assembled. 2. What is the low-level code for...
Make decisions in the situations described in the Ethical Behavior Worksheet. You will not have all the background information on each situation; instead, you should make whatever assumptions you...
World Gourmet Coffee Company (WGCC) is a distributor and processor of different blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale....
8. Draw and label a potential graph and contour plot for: a. A point charge of 1nC. b. A parallel-plate capacitor with AV = 2.0V 9. The electric potential generated by a particular point charge is...
Explain how the following benefit from the issue of share dividends (bonus shares): a. Existing shareholders b. Future shareholders c. The company.
Peach Furniture has decided to purchase 65 percent of Banana Appliances Ltd for $43 million in cash. The two companies' balance sheets, as at acquisition date, are (in millions of dollars): Peach...
The Centers for Disease Control and Prevention reported a survey of randomly selected Americans age 65 and older, which found that 411 of 1012 men and I 535 of 1062 women suffered from some form of...
You have been asked to review a project with an initial cost of $51,400 and will generate annual cash flows of $17,350 for the next 5 years. Compute the internal rate of return?
(a) What is the magnitude of the tangential acceleration of a bug on the rim of a 10.5-in.-diameter disk if the disk accelerates uniformly from rest to an angular speed of 75.0 rev/min in 3.90 s? 1...
A ball is dropped from the top of a building that is 15 m high. The position of the ball after t seconds is given by the equation s(t) = -4.9t2 + 15. Find the instantaneous acceleration of the ball...
Update your "word occurrences" application. Add unit testing to the word occurrences class. Perform this task using JUnit....
Kyrie Irving made headlines during the 2021 NBA Season because he was unable to play basketball for any home game because of the NYC vaccination mandate. However, he was allowed to play all away...
Sharpe has a capital balance of $300,000 after adjusting assets to fair market value. Rojas contributes $250,000 to receive a 60% interest in a new partnership with Sharpe. Determine the amount and...
Suppose you won a financial literacy competition and are given FJS10000 to invest, with the condition that investment can be done either in, i) Invest in Unit trust of Fiji or Invest in Fijian...
What are common-size financial statements? What role do they play in financial statement analysis?
How does a firm go about increasing its AT ratio? What strategies are likely to be most effective?
What is meant by the term "net" in net operating assets (NOA)?
Three charges Q = 7.0 C, Q1 = 2.0 C and Q2 = -4.0 C are arranged around the corners of and equilateral triangle as shown. Each side of the triangle is a = 0.5m. What is the net force of the charge Q...
Client is a 36-year-old, White female. She is recently divorced with two children, 13 and 15. Client lives in West Phoenix where she has lived all her life. She completed high school and has taken...
Graph the following exponential function. Show work in how you find the y intercept, talk about the end behavior, and state if it is a growth or decay function. y = 5(0.8)-1-3

The following transactions occurred in the 2016 financial year. The opening balance of retained profits was $20

Question:

Step by Step Answer:

The closing balance of retained profits and the increase in total shareholders equity can be calcula...View the full answer

Financial Accounting An Integrated Approach

Students also viewed these Business questions