Accounts

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation - Buildings
• Accumulated Depreciation - Vehicles
• Accumulated OCI
• Bonds Payable
• Buildings
• Cash
• Common Shares
• Common Shares Subscribed
• Common Stock Dividends Distributable
• Contributed Surplus
• Contributed Surplus - Donated Land
• Deficit
• Dividend Receivable
• Dividend Revenue
• Dividends
• Dividends Payable
• Equipment
• FV - NI Investments
• FV - OCI Investments
• Furniture and Fixtures
• Gain on Appreciation of Capital Asset
• Gain on Disposal of Investments FV-OCI
• Income Summary
• Inventory
• Investment in Sinking Fund
• Investment Income or Loss
• Land
• Legal Expense
• Loss in Value of Investment Property
• Machinery
• No Entry
• Notes Payable
• Preferred Shares
• Property Dividends Payable
• Retained Earnings
• Share Subscriptions Receivable
• Treasury Shares
• Unrealized Gain or Loss
• Vehicles

Novak Corp.reported the following amounts in the shareholders' equity section of its December 31, 2019 SFP: Preferred shares, $9 dividend (12,000 shares authorized, 2,400 shares issued) Common shares (unlimited authorized, 29,000 issued) Contributed surplus Retained earnings Accumulated other comprehensive income Total $216,000 696,000 63,900 230,000 65,000 $1,270,900 During 2020, the company had the following transactions that affect shareholders' equity. 1. 2. Paid the annual 2019 $9 per share dividend on preferred shares and a $3 per share dividend on common shares. These dividends had been declared on December 31, 2019. Purchased 3,900 shares of its own outstanding common shares for $33 per share and cancelled them. Issued 800 shares of preferred shares at $105 per share (at the beginning of the year). Declared a 15% stock dividend on the outstanding common shares at their fair value when the shares were selling for $48 3. 4. per share. 5. Issued the stock dividend. Declared the annual 2020 $9 per share dividend on preferred shares and a $2 per share dividend on common shares. These dividends are payable in 2021. 6. The contributed surplus arose from net excess of proceeds over cost on a previous cancellation of common shares. Total assets at December 31, 2019, were $2,140,000, and total assets at December 31, 2020 were $2,616,000. The company follows IFRS. Prepare journal entries to record the transactions above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit 1. 2. 3. 5. 6. Prepare the statement of changes in shareholders' equity for the year ended December 31, 2020. Assume 2020 net income was $460,000 and comprehensive income was $469,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Novak Corp. Statement of Changes in Shareholders' Equity Preferred shares Common Shares Number of Shares Paid-in Number of shares Balance, January 1 $ Net income Other comprehensive income Comprehensive income Repurchase of common shares Issuance of preferred shares Issuance of common shares through stock dividend Cash dividend: - preferred - common Balance, December 31 $ Prepare the December 31, 2020 shareholders' equity section. Novak Corp. Shareholders' Equity TA $ Calculate the rate of return on common shareholders' equity and the rate of return on total assets for 2020. (Round percentage answers to 2 decimal places, e.g. 52.75%.) Rate of return on common shareholders' equity % Rate of return on total assets % Is Novak trading on the equity