Neco Model Questions Vol1 2017 Financial Accounting Question 44

A company's equity at 1 January 2022 consisted of: Ordinary share capital ₦1,000,000 (par value ₦100), Preference share capital ₦200,000 (10 % cumulative, payable annually), Retained earnings ₦150,000 and Treasury shares (cost) ₦50,000. During 2022 the following transactions occurred: 1. On 1 July 2022, 20,000 new ordinary shares were issued at ₦150 each. 2. The company declared and paid a cumulative preference dividend of 10 % on the preference share capital. 3. The company purchased treasury shares costing ₦40,000 (assume 800 shares at ₦50 each). 4. It re‑issued 400 of those treasury shares at ₦60 each. 5. Profit after tax for the year was ₦180,000. No ordinary dividend was paid in 2022 (it was declared on 31 December 2022 and will be paid in January 2023). Prepare a statement of changes in equity for the year ended 31 December 2022 showing the closing balances of each component and total equity. Also compute earnings per share (EPS) based on the weighted‑average number of ordinary shares outstanding during the year (assume the new shares were issued on 1 July 2022).