The following account balances were selected from the records of Blake Corporation at December 31, 2011, after all adjusting entries were completed:

The stock price was \(\$ 17.89\) per share on that date.
\section*{Required:}
1. Identify the amounts that would be reported in the retained earnings column of the statement of change in equity for 2011.
2. Prepare the shareholders' equity section of the statement of financial position at December 31 , 2011.
3. Compute and evaluate the dividend yield ratio.

Transcribed Image Text:

Common shares (no par value; authorized 100,000 shares, issued 36,000 shares) $540,000 Contributed surplus 150,000 Dividends declared and paid in 2011 18,000 Retained earnings, January 1, 2011 67,000 Correction of prior period accounting error (a debit, net of income tax) 8,000 Income summary for 2011 (credit balance) 28,000