1 (continued) Shareholders' equity Common shares Retained earnings 4. 2. Sales Cost of goods sold Depreciation expense op Operating expenses Interest expense Income tax expense Gain on repayment of bonds payable Oper oper Loss on disposal of capital asset Net income 1. 3. ETANA LTD. Statement of Financial Position (continued) as at December 31, 2011 Required: a. Page 2 Additional information On January 10, 2011, Etana issued 10,000 common shares for capital assets. The common shares had a current market value of approximately $75,000. On March 16, 2011, Etana sold a capital asset that cost $112,000 and had accumulated depreciation of $68,000. ETANA LTD. Income Statement for the year ended December 31, 2011 500,000 347,000 847,000 $ 2,709,000 The University of the West Indies On September 1, 2011, Etana issued a 10% stock dividend to shareholders of record on August 15, 2011. This increased common shares and decreased retained earnings by $40,000. Dividends paid in 2011 total $30,000. 100,000 317,000