The accounts of Eemi Ltd as at 1 July 2019 show:

	$000
Share Capital - 9,000,000 fully paid ordinary shares	9,000
Retained Earnings (credit balance)	500
General reserve	200
Asset Revaluation reserve	300
Available for Sale Investments - Revaluation reserve	200
The following relates to the year ending 30 June 2010:
Profit after tax	4,500
Dividends paid/declared:
Interim dividend paid	90
Final dividend declared	220
Amount transferred to general reserve	80
Shares issued (2,000,000 shares payable fully on application)	6,000

                               

Other Gains or (Losses) not yet recognised in the accounts for year ended 30 June 2010

	$000
Gain on Revaluation of land (valuation by independent valuer)	90
Revaluation Decrement (loss) on available-for-sale investments	(65)

 

Additional Information

 

The valuation decrement on available-for-sale investments is to be recognised in the available-for-sale investments - revaluation reserve.

The company tax rate is 30%

Task 5

 

• Prepare journal entries to record the valuation adjustments, including any tax effect.
• Prepare a statement of changes in equity for the year ended 30 June 2018.

Answer rating: 100% (QA)

Step 1 Revaluation reserve It is an account created to record the effec... View the full answer