Solution:
1 | Journal entry | ||||||
Dr | Cr | ||||||
Retained earnings | 947450 | ||||||
Exploration asset | 947450 | ||||||
2015 | 2016 | ||||||
Exploration expenes | 556500 | 797000 | |||||
Less: Tax credit | 166950 | 239100 | |||||
Total | 389550 | 557900 | 947450 | impact on retained earnings | |||
2 | Income statement | ||||||
2015 | 2016 | 2017 | |||||
Profit before tax | 2031000 | 2261000 | |||||
Less: exploration expenes | 556500 | 797000 | |||||
Profit before tax after adjustments | 1474500 | 1464000 | 3003000 | ||||
Tax @ 305 | 442350 | 439200 | 900900 | ||||
PAT | 1032150 | 1024800 | 2102100 | ||||
EPS | 10.3215 | 10.248 | 21.021 | ||||
3 | Items to be restated | ||||||
a) Expenses | |||||||
b) Tax | |||||||
c) Assets | |||||||
d) Retained earnings | |||||||
Retained earnings | |||||||
2015 | 2016 | 2017 | |||||
Opening balance | 0 | 1032150 | 2056950 | ||||
PAT | 1032150 | 1024800 | 2102100 | ||||
Closing balance | 1032150 | 2056950 | 4159050 |
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