Exercise 13-12 (Part Level Submission)

Teal Mountain Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2017, there were 34,000 common and 1,500 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $106. The balance in the Retained Earnings account on January 1, 2017, was $299,000. During 2017, the company had profit of $116,000 and declared a total of $66,000 of dividends, of which $47,000 was paid during the year.

Prepare the shareholders' equity section of the balance sheet on December 31, 2017.