Question (a) (b)
(b) Complete the statement of changes in equity
(i) Total share capital balance $________
Ans: $80,000
(c) Preparing the equity and liabilities section
Equity
Ordinary share capital $__________
$80,000
(c) Prepare the equity and liabilities section
Reserve
Share premium $_________
$20,000
(b) Complete the statement of changes in equity
(ii) Total share premium balance $________
Ans:
$20,000
(c) Prepare the equity and liabilities section
Non-current liabilities
_________________ $_________
10% Debenture (2028) $25,000
(c) Prepare the equity and liabilities section
Current liabilities
_________________ $_________
Trade payables $37,720
(a) Calculate the total number of shares issued.
Ans:
[$80,000/$0.5]
= 160,000 shares
(a) Calculate the total amount of dividend paid during the year ended 31 Dec 2023
Ans:
160,000 shares x $0.25
$40,000
(c) Prepare the equity and liabilities section
Total equity (Equity+ Reserve) $_____________
$237,900
(b) Complete the statement of changes in equity
(iii) Total retained earnings balance $___________
Ans:
= $139,400 + $138,500 - $40,000
= $237,900
(c) Prepare the equity and liabilities section
Reserve
Retained earnings $_________
= $39,400 + $138,500 - $40,000
= $137,900
(c) Prepare the equity and liabilities section
Total equity and liabilities $__________
$300,620
Do you think DC Ltd is a worthy investment?
Yes (Profit-making business and dividend paid)
No (Cash balance)