Common shares, unlimited shares authorized; 4,400,000 shares issued and outstanding Retained earnings $1,027,500 1,375,000 On April 1, 2020, 240,000 common shares were issued at $0.70 per share. On June 1, the board of directors declared a 5% share dividend to shareholders of record on June 15, the distribution date was July 1. The market prices of the shares on June 1, June 15, a July 1 were $2.78, $1.86, and $2.56, respectively. On December 11, the board of directors declared a 21 share spilt to shareholders c record on December 15, the distribution date was December 20. Profit earned during the year was $1,457,500 Required: Prepare the company's equity section on the December 31, 2020, balance sheet.
Common shares, unlimited shares authorized; 4,400,000 shares issued and outstanding Retained earnings $1,027,500 1,375,000 On April 1, 2020, 240,000 common shares were issued at $0.70 per share. On June 1, the board of directors declared a 5% share dividend to shareholders of record on June 15, the distribution date was July 1. The market prices of the shares on June 1, June 15, a July 1 were $2.78, $1.86, and $2.56, respectively. On December 11, the board of directors declared a 21 share spilt to shareholders c record on December 15, the distribution date was December 20. Profit earned during the year was $1,457,500 Required: Prepare the company's equity section on the December 31, 2020, balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Common shares, unlimited shares authorized; 4,400,000
shares issued and outstanding
Retained earnings
$1,027,500
1,375,000
On April 1, 2020, 240,000 common shares were issued at $0.70 per share. On June 1, the board of directors declared a 5% share
dividend to shareholders of record on June 15, the distribution date was July 1. The market prices of the shares on June 1, June 15, an
July 1 were $2.78, $1.86, and $2.56, respectively. On December 11, the board of directors declared a 21 share split to shareholders of
record on December 15, the distribution date was December 20. Profit earned during the year was $1,457,500
Required:
Prepare the company's equity section on the December 31, 2020, balance sheet
Total equity
CARFIND INC
Equity Section of Balance Sheet
December 31, 2020
Contributed capital:
Common shares, unlimited shares authorized. 9.744,000 shares issued and outstanding
Retained earnings
$
0
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