Prepare a Statement of Changes In Equity for end of the year. Ahmed's capital structure is at
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ahmed's capital structure is at the beginning of the year is:- $000 200 75 80 160 70 585 $1 Ordinary Shares 5% Preference Shares of $1 Share Premium account Retained Earnings Revaluation Reserve The following took place within the year (in the order given): A one for one bonus issue A right issue of 100 000 ordinary shares of $1.00 each at $1.40 pershare Interim dividend paid of $5 000( Divided equally between preference and ordinary shareholders) Profit for the year was $35 000 $80 000 transferred to the General Reserve 60% of Preference was redeemed at par using funds in the share premium account to finance the redemption. 75% of the balance in Retained Earnings was transferred to Capital Redemption Account An asset which had cost $20 000 and with Net Book Value of $12 000, was revalued to $27 500. The directors recommended a $0.05 final dividend to be paid to the ordinary shareholders and a completion of the balance dividend owed to the Preference Shareholders. Ahmed's capital structure is at the beginning of the year is:- $000 200 75 80 160 70 585 $1 Ordinary Shares 5% Preference Shares of $1 Share Premium account Retained Earnings Revaluation Reserve The following took place within the year (in the order given): A one for one bonus issue A right issue of 100 000 ordinary shares of $1.00 each at $1.40 pershare Interim dividend paid of $5 000( Divided equally between preference and ordinary shareholders) Profit for the year was $35 000 $80 000 transferred to the General Reserve 60% of Preference was redeemed at par using funds in the share premium account to finance the redemption. 75% of the balance in Retained Earnings was transferred to Capital Redemption Account An asset which had cost $20 000 and with Net Book Value of $12 000, was revalued to $27 500. The directors recommended a $0.05 final dividend to be paid to the ordinary shareholders and a completion of the balance dividend owed to the Preference Shareholders.
Expert Answer:
Answer rating: 100% (QA)
Step 1 Statement of Changes in Equity it is important for the firm to m... View the full answer
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
Posted Date:
Students also viewed these accounting questions
-
1. Prepare a statement of changes in equity for the year ended December 31,2020, assuming profit earned during the year was $1,005,000. 2. Prepare the equity section of the December 31,2020 , balance...
-
The statement of changes in equity for a corporation shows both how retained earnings and share capital have changed during the accounting period. True/False
-
Complete balance sheet and prepare a statement of changes in retained earnings. Following is a statement of cash flows (indirect method) for Hartford, Inc., for the year ended December 31, 2014. Also...
-
What are some signs of dental disease?
-
Why would an RFP state the approvals that will be required during the project? Give some examples.
-
Crazy Mountain Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Crazy Mountain is owned and operated by Karl Young, a well-known sports enthusiast and hunter....
-
Helmut & Co., a public accounting firm, was the new auditor of Mountain Ltd., a private company in the farm equipment and supply business. The previous auditor, Lopez and Williams, had been...
-
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2013. Accounting assistants furnish the data shown below. An accounting assistant has prepared the detailed manufacturing...
-
Global Corns Company's (GCC) latest annual dividend of RM1.25 a share was paid yesterday and maintained its historic 7 percent annual rate of growth. You plan to purchase the stock today because you...
-
ACCT 110 Integrated Excel Assignment #2 - Instructor: Nicole Harris Part 1: Balance Sheet and Income Statement Instructions: Use the drop down list under the column "type of account" to categorize...
-
The Wind Chill Factor (WCF) measures how cold it feels with a given air temperature T (in degrees Fahrenheit) and wind speed V (in miles per hour). One formula for WCF is WCF = 35.7 + 0.6 T - 35.7 (V...
-
A single-plate clutch transmits \(20 \mathrm{~kW}\) at \(1000 \mathrm{rpm}\). The maximum pressure intensity between the plates is \(0.09 \mathrm{MPa}\). The outer diameter of the plate is \(350...
-
Which of the following is not an attestation standard? a. The engagement shall be performed by a practitioner or practitioners having adequate. knowledge in the subject matter of the assertion. b....
-
Four audit segments or phases are identified in the chapter. When is each performed?
-
Give examples of two assertions or representations of an organization.
-
What is the difference between a flowchart and an internal control questionnaire?
-
Analyze the components of a secure SCADA environment. Conduct research on secure communication protocols. Recommend secure techniques and technology for SCADA communication protocols. Use at least 2...
-
Dawson Companys balance sheet information at the end of 2019 and 2020 is as follows: Additional information: The company did not issue any common stock during 2020. Required : Next Level Fill in the...
-
(a) Explain how the amount of a provision should be measured. (b) A company needs to make a provision for the cost of repairing a faulty product supplied to a customer some weeks previously. The...
-
On 1 January 2018, a company which prepares accounts to 31 December grants "share appreciation rights" to 30 of its employees. By virtue of these rights, the employees concerned will become entitled...
-
The following trial balance has been extracted from the books of Walrus plc as at 31 March 2018: The following information is also available: 1. The company's non-depreciable land was valued at...
-
Unit Conversion. 1 kilogram (kg) is equal to 2.20462 pounds. Convert 200 pounds to kilograms. Round to three decimal places, if necessary.
-
In this exercise, we explore what happens when an item is marked up by a percentage, and then marked down using the same percentage. Wegmans purchases an item for \(\$ 5\) per unit. The markup on the...
-
Unit Conversion. There are 1,000 meters \((\mathrm{m})\) in a kilometer \((\mathrm{km})\), and 100 centimeters \((\mathrm{cm})\) in a meter. Convert \(4 \mathrm{~km}\) to centimeters.
Study smarter with the SolutionInn App