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.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.1AP

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

2
ook
int
ences
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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