The following information has been extracted from ABC company's annual report for the year 2020. You are
Question:
The following information has been extracted from ABC company's annual report for the year 2020. You are required to prepare the owner's equity statement of ABC Company.
a. The authorized share capital of $200,000 of $10 each of which 70% shares are issued and paid-up at $20.
b. The beginning balance of retained earnings was $150,000. Current year profit and loss and other comprehensive income show a profit of $22500, but there was an amount of $2000 for depreciation.
c. The company has some noncurrent assets whose market value is $25000. However, these assets were purchased for $52,000 and accumulated depreciation to date was $15000.
d. Due to a change in accounting policy, the company needs to adjust $2000 as the loss resulted from the previous operation. The company also recovered $2000 which was previously written off.
e. The company declared a 10% Stock dividend and the market price was $20 per share and cash dividend 5%.
f. Treasury stock was $10,000.
