Exercise 14-9: On January 1, 2017, Pharoah Incorporated had an unlimited number of common shares authorized, 220,000 issued, and the balance in the Common Shares account was $2.2 million. The company reported a balance in Retained Earnings on this date of $840,000 and accumulated other comprehensive income of $28,000. During the year, the following occurred:

1.		Issued 80,000 common shares at $12 per share on July 1.
2.		Declared a 3-for-2 stock split on September 30 when the fair value was $16 per share.
3.		Declared a 5% stock dividend on December 9 to common shareholders of record at December 30, distributable on January 16, 2018. At the declaration date, the fair value of the common shares was $19 per share.
4.		Earned profit of $400,000 for the year.
5.		Recognized a loss on equity investments of $40,000 before tax, which will be reported as other comprehensive income. The companys income tax rate is 25%.

Prepare a statement of changes in shareholders equity for the year ended December 31, 2017.

PHAROAH CORPORATION Statement of Changes in Shareholders Equity December 31, 2017Year ended December 31, 2017Month ended December 31, 2017
		Common Shares		Stock Dividend Distributable		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total
Balance, January 1		$		$		$		$		$
Issued for cash
Stock split 3 for 2
Stock dividends
Comprehensive income
Balance, December 31		$		$		$		$		$

Exercise 14-10

Cullumber Rental Corporation had the following balances in its shareholders' equity accounts at January 1, 2017:

Accumulated other comprehensive income (loss)		$ (22,000	)
Contributed surplusreacquisition of common shares		555,000
Retained earnings		1,490,000
Common shares (35,000 shares)		770,000

Cullumber had the following transactions and events during 2017:

Feb. 2		Repurchased 1,200 shares for $58,800.
Apr. 17		Declared and paid cash dividends of $61,000.
Oct. 29		Issued 2,100 shares for $104,000 cash.
Dec. 31		Reported comprehensive income of $377,000, which included other comprehensive income of $45,000.

Prepare journal entries to record the transactions that took place during 2017.

Prepare a statement of changes in shareholders equity at December 31, 2017.

Calculate the number of shares issued as at December 31, 2017

Exercise 14-12 (Part Level Submission)

On December 31 2016, Sunland Corporation has 5,500, $2 preferred shares and 88,000 common shares. During 2017, the company completed the following share transactions:

Apr.		1		Sold 11,000 common shares for $5,500 cash.
Sept.		30		Reacquired 5,500 common shares for $2,000 cash.

Sunlands profit in 2017 is $572,000.

(a) Calculate the weighted average number of common shares for 2017.