Prepare the entity statement of changes in equity for year

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Reference no: EM132937014

Since ABC Ltd's date of incorporation, it has been recognising the purchase of computers as an expense. However, after receiving the appropriate advice from the entity's new financial consultant who is assisting with the preparation of the entity's financial statements for 2019, the entity decided that the appropriate treatment should have been to capitalise the amounts as assets instead. The cumulative amount recognised as expense over the years totalled $120 million. The entity's retained earnings as at January 1, 2019 stood at $40 million and it earned net income of $80 million for the entire period. The company has share capital of $500 million as at January 1, 2019 and it issued $300 million in new share capital during the period. It declared dividends of 5% of the ending share capital as at December 31, 2019.

Required:

Problem 1: Prepare the entity's statement of changes in equity for the year 2019.

Reference no: EM132937014

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