Shelby Corporation was organized in January 2017 by ten shareholders to operate an air-conditioning sales and service
Question:
Shelby Corporation was organized in January 2017 by ten shareholders to operate an air-conditioning sales and service business. The charter issued by the province authorized the following shares:
Common shares: no-par value; 200,000 shares
Preferred shares: no-par value; 6 percent; 50,000 shares
During January and February 2017, the following share transactions were completed:
a. Collected $40,000 cash from each of the ten organizers and issued 2,000 common shares to each of them
b. Issued 15,000 preferred shares at $25 per share; collected in cash Net income for 2017 was $40,000; cash dividends declared and paid at year-end were $10,000.
Required:
Prepare the shareholders’ equity section of the balance sheet at December 31, 2017.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Shareholders Equity December 31 2017 Contributed Capital Preferred Shares ...View the full answer
Fundamentals of Financial Accounting
ISBN: 978-1259269868
5th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
