Prepare the note disclosure required (e) On 10 September 2021, the company paid a dividend of $210,000, which was declared on 14 July 2020. The company also declared and paid an interim dividend on 25 March 2022 from the retained earnings. (f) Share capital at 1 July 2021 comprised 1,000,000 ordinary shares. These were issued in April 2019 at an issue price of $3.50 and are fully paid. In relation to this issue $32,000 share issue costs were incurred, and these were paid by the company in May 2019. In November 2021 the company issued a prospectus inviting applications for 2,000,000 ordinary shares at an issue price of $4.00, with $3.00 payable on application and $1.00 due on allotment. All of these shares were issued in January 2022. All of the money required on allotment was received by the end of February 2022. Share issue costs in relation to this issue totalled $22,000 and were paid on 7 March 2022. (g) On 30 June 2022, the directors decided to transfer $4,000,000 from the general reserve to the retained earnings. (h) On 14 July 2022 the directors declared a final dividend of 25c per share from retained earnings. This is not subject to further authorisation or approval
Prepare the note disclosure required (e) On 10 September 2021, the company paid a dividend of $210,000, which was declared on 14 July 2020. The company also declared and paid an interim dividend on 25 March 2022 from the retained earnings. (f) Share capital at 1 July 2021 comprised 1,000,000 ordinary shares. These were issued in April 2019 at an issue price of $3.50 and are fully paid. In relation to this issue $32,000 share issue costs were incurred, and these were paid by the company in May 2019. In November 2021 the company issued a prospectus inviting applications for 2,000,000 ordinary shares at an issue price of $4.00, with $3.00 payable on application and $1.00 due on allotment. All of these shares were issued in January 2022. All of the money required on allotment was received by the end of February 2022. Share issue costs in relation to this issue totalled $22,000 and were paid on 7 March 2022. (g) On 30 June 2022, the directors decided to transfer $4,000,000 from the general reserve to the retained earnings. (h) On 14 July 2022 the directors declared a final dividend of 25c per share from retained earnings. This is not subject to further authorisation or approval
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 76E
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Prepare the note disclosure required
(e) On 10 September 2021, the company paid a dividend of $210,000, which was declared on 14 July 2020. The company also declared and paid an interim dividend on 25 March 2022 from the retained earnings .
(f) Share capital at 1 July 2021 comprised 1,000,000 ordinary shares. These were issued in April 2019 at an issue price of $3.50 and are fully paid. In relation to this issue $32,000 share issue costs were incurred, and these were paid by the company in May 2019. In November 2021 the company issued a prospectus inviting applications for 2,000,000 ordinary shares at an issue price of $4.00, with $3.00 payable on application and $1.00 due on allotment. All of these shares were issued in January 2022. All of the money required on allotment was received by the end of February 2022. Share issue costs in relation to this issue totalled $22,000 and were paid on 7 March 2022.
(g) On 30 June 2022, the directors decided to transfer $4,000,000 from the general reserve to the retained earnings.
(h) On 14 July 2022 the directors declared a final dividend of 25c per share from retained earnings. This is not subject to further authorisation or approval.
Transcribed Image Text:4:48 1
喜儀 -20:54
Statement of Changes in Equity
For the year ended 30 August 2022
Share
General
Reserves
Retained
Capital
Earnings
Total
As at May 2019
Share issue
3,468,000
As at 30 June 2021
3,468,000
25,676,00
11.446.000
10,000,000
4,230.000
Balance at ist July 2021
Interim Dividend Paid
-1.245.000
Total Comprehensive
Income
8.93300
6,938,300
Share issue
7,978,000
Dividend paid
Transfer of reserve
-210,000
210,000
4,000,000
4,000,000
42.382,30
19.424.000
6.000,000
15.713.300
Balance at 30 August 2022
General Journal
14 July 2020
Dividend Declared
210,000
Didend Payable
210.000
Dividend declared
10 Seprember 2021 Dividmd peyable
210.000
Cesh
210.000
Dindend paid
25 March 2022 Reteinni cnings
1,245,000
Interim dividend payable
1245,000
erin vdnd pad
January 2022
Cash trt
6,000,000
appliretien
6.000.000
Receipr of mone wih plication
Allotet
2.000.000
Applicarion
6.000.000
Share Capital
.000.000
Cash
6,000,000
Cash trust
6.000.000
Morry receed oe applicerion
Februay 2022
Cash
2.000.000
Allement
2.000.d00
Recriprf alloent monry
7 March 2022
2
Spa cagie
22000
ca ereditu peyables
22.000
Cou n hare tur
Jane 2022
General reserve
e
4000.000
Reained eamings
4.000.000
Irensfer pom generei rese
14 July 2002
Retained eaming
750.000
Diridend peyahie
750.000
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