On January 1, 2015, Wirth Corporation, a publicly traded company, had these shareholders' equity accounts:
Common shares (unlimited number of shares authorized,
110,000 shares issued) ..................................................$1,100,000
Retained earnings ....................................................... 540,000
Accumulated other comprehensive income ......................... 60,000
During the year, the following transactions occurred:
Jan. 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15.
Apr. 15 Declared a 10% stock dividend to shareholders of record on April 30, distributable May 15. On April 15, April 30, and May 15, the share prices were $15, $13.50, and $14, respectively.
Oct. 1 Effected a 2-for-1 stock split. On October 1, the share price was $20.
Dec. 31 Determined that profit for the year was $350,000.
Instructions
(a) Record the above transactions, including any required entries to close dividends and profit to Retained Earnings.
(b) Open T accounts as required and post to the shareholders' equity accounts.
(c) Prepare a statement of changes in equity for the year.
(d) Prepare the shareholders' equity section of the statement of financial position at December 31.