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On January 1, 2021, Sheridan Incorporated had an unlimited number of common shares authorized, 230,000 issued, and the balance in the Common Shares account was $2.3 million. The company reported a balance in Retained Earnings on this date of $890,000 and accumulated other comprehensive income of $27,000. During the year, the following occurred: 1. 2. 3. 4. 5. Issued 80,000 common shares at $14 per share on July 1, Declared a 3-for-2 stock split on September 30 when the fair value was $18 per share. Declared a 5% stock dividend on December 9 to common shareholders of record at December 30, distributable on January 16, 2022. At the declaration date, the fair value of the common shares was $21 per share Earned profit of $400,000 for the year. Recognized a loss on equity investments of $45,000 before tax, which will be reported as other comprehensive income. The company's income tax rate is 25%.

On January 1, 2021, Sheridan Incorporated had an unlimited number of common shares authorized, 230,000 issued, and the balance in the Common Shares account was $2.3 million. The company reported a balance in Retained Earnings on this date of $890,000 and accumulated other comprehensive income of $27,000. During the year, the following occurred: 1. 2. 3. 4. 5. Issued 80,000 common shares at $14 per share on July 1, Declared a 3-for-2 stock split on September 30 when the fair value was $18 per share. Declared a 5% stock dividend on December 9 to common shareholders of record at December 30, distributable on January 16, 2022. At the declaration date, the fair value of the common shares was $21 per share Earned profit of $400,000 for the year. Recognized a loss on equity investments of $45,000 before tax, which will be reported as other comprehensive income. The company's income tax rate is 25%.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a statement of changes in shareholders' equity for the year ended December 31, 2021. (Enter negative amounts using either a negative sign preceding the number es -45 or parentheses eg. (451) Balance, January 11 Issued for cash Stock split 3 for 2 Stock dividends Comprehensive income Balance December 31 $ Common Shares SHERIDAN CORPORATION Statement of Changes in Shareholders' Equity Stock Dividend Distributable Retained Earnings $ Accumulat Comprel Income
Transcribed Image Text:Prepare a statement of changes in shareholders' equity for the year ended December 31, 2021. (Enter negative amounts using either a negative sign preceding the number es -45 or parentheses eg. (451) Balance, January 11 Issued for cash Stock split 3 for 2 Stock dividends Comprehensive income Balance December 31 $ Common Shares SHERIDAN CORPORATION Statement of Changes in Shareholders' Equity Stock Dividend Distributable Retained Earnings $ Accumulat Comprel Income
On January 1, 2021, Sheridan Incorporated had an unlimited number of common shares authorized, 230,000 issued, and the balance in the Common Shares account was $2.3 million. The company reported a balance in Retained Earnings on this date of $890,000 and accumulated other comprehensive income of $27,000. During the year, the following occurred: 1 2. 3. 4. 5 Issued 80,000 common shares at $14 per share on July 1. Declared a 3-for-2 stock split on September 30 when the fair value was $18 per share. Declared a 5% stock dividend on December 9 to common shareholders of record at December 30, distributable on January 16,2022. At the declaration date, the fair value of the common shares was $21 per shard. Earned profit of $400.000 for the year. Recognized a loss on equity investments of $45,000 before tax, which will be reported as other comprehensive income. The company's income tax rate is 25%.
Transcribed Image Text:On January 1, 2021, Sheridan Incorporated had an unlimited number of common shares authorized, 230,000 issued, and the balance in the Common Shares account was $2.3 million. The company reported a balance in Retained Earnings on this date of $890,000 and accumulated other comprehensive income of $27,000. During the year, the following occurred: 1 2. 3. 4. 5 Issued 80,000 common shares at $14 per share on July 1. Declared a 3-for-2 stock split on September 30 when the fair value was $18 per share. Declared a 5% stock dividend on December 9 to common shareholders of record at December 30, distributable on January 16,2022. At the declaration date, the fair value of the common shares was $21 per shard. Earned profit of $400.000 for the year. Recognized a loss on equity investments of $45,000 before tax, which will be reported as other comprehensive income. The company's income tax rate is 25%.
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