Pharma Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an unlimited number of common shares authorized and 5.2 million shares issued at an average value of $25 per share. As well, there were 5 million preferred shares authorized, with 250,000 of them issued at $20 per share. The balance in retained earnings was $26,610,000. The balance in accumulated other comprehensive income was $525,000. The preferred shares pay an annual dividend of $2 per share. During 2024, the following transactions affected shareholders’ equity:In total, 200,000 new common shares were issued at $30 per share.The preferred dividend for the year was declared and paid.A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one month after the declaration.In early December 2024, a dividend of $1.50 per share was declared on the common shares. The date of record was December 15, 2024. The dividend was to be paid the following year.The company earned net income of $14,820,000 and had an other comprehensive loss of $145,000.On December 31, 2024, the company declared a two-for-one stock split on common shares.RequiredA.Use a spreadsheet or table format to track all of the changes in the shareholders’ equity accounts in 2024.B. Prepare the statement of changes in shareholders’ equity for 2024 and the shareholders’ equity section of the statement of financial position as at the end of 2024. (Hint: the statement of changes in shareholders’ equity will be similar to the table from part (a) but similar transactions, such as dividends, will be grouped into one line.) AP11-2A (Equity transactions, financial statement preparation) Pharma Shop Ltd. is amid-sized public company that had been in operation for many years. On December 31, 2023, ithad an unlimited number of common shares authorized and 5.2 million shares issued at anaverage value of $25 per share. As well, there were 5 million preferred shares authorized, with250,000 of them issued at $20 per share. The balance in retained earnings was $26,610,000. Thebalance in accumulated other comprehensive income was $525,000. The preferred shares pay anannual dividend of $2 per share. During 2024, the following transactions affected shareholders'equity:1. In total, 200,000 new common shares were issued at $30 per share.2. The preferred dividend for the year was declared and paid.3. A 10% common stock dividend was declared when the market price was $33 per share. Theshares were distributed one month after the declaration.4. In early December 2024, a dividend of $1.50 per share was declared on the common shares.The date of record was December 15, 2024. The dividend was to be paid the following year.5. The company earned net income of $14,820,000 and had an other comprehensive loss of$145,000.6. On December 31, 2024, the company declared a two-for-one stock split on common shares.Requireda. Use a spreadsheet or table format like the one in Exhibit 11.10 in Chapter End Review Problem11-4 to track all of the changes in the shareholders' equity accounts in 2024.b. Prepare the statement of changes in shareholders' equity for 2024 and the shareholders'equity section of the statement of financial position as at the end of 2024. (Hint: the statementof changes in shareholders' equity will be similar to the table from part (a) but similartransactions, such as dividends, will be grouped into one line.)

A balance sheet is a financial statement that represents the financial position of a company as on a…

Pharma Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an unlimited number of common shares authorized and 5.2 million shares issued at an average value of $25 per share. As well, there were 5 million preferred shares authorized, with 250,000 of them issued at $20 per share. The balance in retained earnings was $26,610,000. The balance in accumulated other comprehensive income was $525,000. The preferred shares pay an annual dividend of $2 per share. During 2024, the following transactions affected shareholders’ equity: In total, 200,000 new common shares were issued at $30 per share. The preferred dividend for the year was declared and paid. A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one month after the declaration. In early December 2024, a dividend of $1.50 per share was declared on the common shares. The date of record was December 15, 2024. The dividend was to be paid the following year. The company earned net income of $14,820,000 and had an other comprehensive loss of $145,000. On December 31, 2024, the company declared a two-for-one stock split on common shares. Required A.Use a spreadsheet or table format to track all of the changes in the shareholders’ equity accounts in 2024. B. Prepare the statement of changes in shareholders’ equity for 2024 and the shareholders’ equity section of the statement of financial position as at the end of 2024. (Hint: the statement of changes in shareholders’ equity will be similar to the table from part (a) but similar transactions, such as dividends, will be grouped into one line.)

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Pharma Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an unlimited number of common shares authorized and 5.2 million shares issued at an average value of $25 per share. As well, there were 5 million preferred shares authorized, with 250,000 of them issued at $20 per share. The balance in retained earnings was $26,610,000. The balance in accumulated other comprehensive income was $525,000. The preferred shares pay an annual dividend of $2 per share. During 2024, the following transactions affected shareholders’ equity: In total, 200,000 new common shares were issued at $30 per share. The preferred dividend for the year was declared and paid. A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one month after the declaration. In early December 2024, a dividend of $1.50 per share was declared on the common shares. The date of record was December 15, 2024. The dividend was to be paid the following year. The company earned net income of $14,820,000 and had an other comprehensive loss of $145,000. On December 31, 2024, the company declared a two-for-one stock split on common shares. Required A.Use a spreadsheet or table format to track all of the changes in the shareholders’ equity accounts in 2024. B. Prepare the statement of changes in shareholders’ equity for 2024 and the shareholders’ equity section of the statement of financial position as at the end of 2024. (Hint: the statement of changes in shareholders’ equity will be similar to the table from part (a) but similar transactions, such as dividends, will be grouped into one line.)

AP11-2A (Equity transactions, financial statement preparation) Pharma Shop Ltd. is a
mid-sized public company that had been in operation for many years. On December 31, 2023, it
had an unlimited number of common shares authorized and 5.2 million shares issued at an
average value of $25 per share. As well, there were 5 million preferred shares authorized, with
250,000 of them issued at $20 per share. The balance in retained earnings was $26,610,000. The
balance in accumulated other comprehensive income was $525,000. The preferred shares pay an
annual dividend of $2 per share. During 2024, the following transactions affected shareholders'
equity:
1. In total, 200,000 new common shares were issued at $30 per share.
2. The preferred dividend for the year was declared and paid.
3. A 10% common stock dividend was declared when the market price was $33 per share. The
shares were distributed one month after the declaration.
4. In early December 2024, a dividend of $1.50 per share was declared on the common shares.
The date of record was December 15, 2024. The dividend was to be paid the following year.
5. The company earned net income of $14,820,000 and had an other comprehensive loss of
$145,000.
6. On December 31, 2024, the company declared a two-for-one stock split on common shares.
Required
a. Use a spreadsheet or table format like the one in Exhibit 11.10 in Chapter End Review Problem
11-4 to track all of the changes in the shareholders' equity accounts in 2024.
b. Prepare the statement of changes in shareholders' equity for 2024 and the shareholders'
equity section of the statement of financial position as at the end of 2024. (Hint: the statement
of changes in shareholders' equity will be similar to the table from part (a) but similar
transactions, such as dividends, will be grouped into one line.)

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