Bronwyn Medical Labs Ltd. has the following balances in its shareholders' equity accounts as at April 30, 2015:
Retained earnings ............................................. $5,214,230
Common shares ............................................... 5,236,500
Preferred shares ............................................... 1,325,000
Accumulated other comprehensive income ............... 325,000
During the fiscal year ended April 30, 2016, Bronwyn Medical Labs Ltd. issued preferred shares of $525,300, recorded net income of $3,562,310, a gain on revaluation of assets of $23,000, issued common shares of $1,235,000, declared a share dividend of $368,000, declared cash dividends of $235,000 on the preferred shares and $256,000 on the common shares, and discovered that $62,000 of revenue in March 2014 had been cred- ited to accounts receivable in error. Bronwyn Medical Labs has a 32% income tax rate.
Instructions
1. Journalize the correction of the error from March 2014.
2. Prepare a statement of changes in equity for the year ended April 30, 2016.