Question
Ayayai Umbrella Corporation had the following balances at December 31, 2016 (all amounts in thousands): preferred shares, $2,850; common shares, $7,500; contributed surplus, $3,150; retained
Ayayai Umbrella Corporation had the following balances at December 31, 2016 (all amounts in thousands): preferred shares, $2,850; common shares, $7,500; contributed surplus, $3,150; retained earnings, $19,500; and accumulated other comprehensive income, $1,950. During the year ended December 31, 2017, the company earned net income of $6,300,000, generated an unrealized holding gain on FV-OCI investments of $480,000, sold common shares of $225,000, and paid out dividends of $30,000 and $20,000 to preferred and common shareholders, respectively. Gains/losses on FV-OCI investments are recycled through net income. (a1) Prepare a statement of changes in equity for the year ended December 31, 2017. (Enter amounts in thousands. Round answers to 0 decimal places, e.g. 5,275.) (a2) Prepare the shareholders equity section of the Ayayai Umbrella Corporation balance sheet as at December 31, 2017. (Enter amounts in thousands. Round answers to 0 decimal places, e.g. 5,275.)
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