SECTION 1 [6 Marks] HobartLtd's Balance Sheet as at 1 July 2021 showed the following...
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Accounting
SECTION 1 [6 Marks]
HobartLtd's Balance Sheet as at 1 July 2021 showed the following information Share Capital 280,000 Retained Profits 175,000 General Reserve 35,000 Revaluation Surplus 77,000 Total Shareholders'Equity 567,000 The following took place during the year ending 30 June 2022 for Hobart Ltd:
(a) Hobart paid suppliers $25,000 that was owing from last period. (b)Shares of$60,000 were issued for cash taking the total number of shares issued to 85.000 shares
(c) Performed a 2:1 share split (d)$10,000 was transferred to Retained Profits from the General Reserve.
(e) Profit for the period was $82,000 (f) Dividends declared during the period were $65,000. (g)Land was revalued upwards by$50,000.This was the first time the land was revalued
Assume there were no transactions during the period other than those mentioned above. Required:
As at 30 June 2022 calculate (including simple workings) the:
(i) closing balance of Share capital [2 marks] (ii) closing balance of Revaluation Surplus [2 marks]
(iii) closing balance of Retained Profits [2 marks]
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