The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: 2021 2020 Contributed capital: Common shares, 54,100 shares authorized; 23,040 and 21,300 shares issued and outstanding, respectively. Retained earnings $677,760 $602,790 521,900 476,900 The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.40 per share cash dividend was declared, and the date of record was five days later.
The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: 2021 2020 Contributed capital: Common shares, 54,100 shares authorized; 23,040 and 21,300 shares issued and outstanding, respectively. Retained earnings $677,760 $602,790 521,900 476,900 The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.40 per share cash dividend was declared, and the date of record was five days later.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Am. 103.
Transcribed Image Text:The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows:
2021
2020
Contributed capital:
Common shares, 54,100 shares authorized; 23,040 and 21,300 shares
issued and outstanding, respectively.
Retained earnings
$677,760 $602,790
521,900 476,900
The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky):
Jan. 5 A $1.40 per share cash dividend was declared, and the date of record was five days later.
Mar. 20 2,100 common shares were repurchased and retired at $28.30 per share.
Apr. 5 A $0.70 per share cash dividend was declared, and the date of record was five days later.
July 5 A $1.90 per share cash dividend was declared, and the date of record was five days later.
July 31 A 20.00% share dividend was declared when the market value was $35.00 per share.
Aug. 14 The share dividend was issued.
Oct. 5 A $1.50 per share cash dividend was declared, and the date of record was five days later.
2. How much profit did the company earn during 2021?
Profit
Answer is complete but not entirely correct.
$
228,200
3. Prepare the statement of changes in equity for the year ended December 31, 2021. (Deductible values should be indicated by a
minus sign.)
Answer is not complete.
KENTUCKY CORPORATION
Statement of Changes in Equity
For Year Ended December 31, 2021
Common
Shares
Retained
Earnings
Total
Equity
Balance, January 1
$ 602,7996
S 476,900
$ 1,079,699
S
0
$
0
$
0
$
0
Balance, December 31
$
602,799 $ 476,900
$ 1,079,699
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