State the double entry needed to record a rights issue of shares at a premium.
State what event was shown by the entry on 10 February 2016.
Explain why the entry dated 10 February 2016 was posted to the share premium account instead of the retained earnings account.
State which dividend the entry on 25 June 2016 recorded.
State why the directors decided to set up a general reserve.
Explain why the company’s long-term bank loan received on 1 July 2016 was not entered in the statement of changes in equity.
Calculate the net book value of non-current assets that will be shown in the statement of financial position at 31 December 2017.
Prepare the statement of financial position at 31 December 2017. Use the next page for your workings.
Advise the directors whether or not the depreciation rates should be decreased. Justify your answer.