Waec Model Questions Vol1 2022 Financial Accounting Question 18
Practice objective / multiple choice question 18 from the 2022 Waec Model Questions Vol1 Financial Accounting examination.
A company had the following equity balances on 1 January 2022: Share capital (ordinary, ₦0.5 par) - ₦500,000 Share premium - ₦150,000 Retained earnings - ₦80,000 During 2022 the following transactions occurred: 1. Issued 5,000 new ordinary shares at ₦2 each. Issue expenses amounted to ₦2,000. 2. Bought back 1,000 of its own shares at ₦1.2 each (held as treasury shares). 3. Declared and paid a final dividend of ₦0.3 per share on the total shares outstanding after the issue but before the buy‑back. 4. Reported profit before tax of ₦120,000 and tax expense of ₦30,000. No other transactions took place. Determine (a) the retained earnings balance at 31 December 2022 and (b) the total equity at that date.
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This is Waec Model Questions Vol1 2022 Financial Accounting Question 18. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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