Neco 2022 Financial Accounting Question 12

XYZ Ltd has the following equity balances at the beginning of the year:\n- Share capital (ordinary shares \(\text{N}\$10\) each): \\(500,000\\) Naira\n- Share premium: \\(150,000\\) Naira\n- Retained earnings: \\(200,000\\) Naira\nDuring the year the company:\n1. Issued 5,000 new ordinary shares at \(\text{N}\$15\) each.\n2. Declared and paid a dividend of \(10\%\) on the total ordinary share capital after the issue.\n3. Purchased its own shares costing \(120,000\) Naira at market price.\n4. Reported profit before tax of \(300,000\) Naira and tax expense of \(30\%\) of profit before tax.\n5. Received interest income of \(20,000\) Naira and paid interest expense of \(15,000\) Naira.\nPrepare the statement of changes in equity and determine the closing retained earnings.