Brighttime Business Centre Ltd. reported the following accounts and their balances as at January 1, 2015, the

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Brighttime Business Centre Ltd. reported the following accounts and their balances as at January 1, 2015, the beginning of the current fiscal year:

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The company reported the following results for the year:
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,000
Dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150,000
Instructions
1. Journalize the closing entries at year-end.
2. Prepare a statement of changes in equity for the year ended December 31, 2015.
Why would a company declare dividends in a year it recorded a net loss?
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Accounting Volume 2

ISBN: 978-0176509743

2nd Canadian edition

Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren

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