Question
Kaye Biotech Inc. had the following equity account balances at December 31, 2022: Preferred shares, $2.45, non-cumulative, Authorized: 20,000 shares Issued and outstanding: 5,000 shares
Kaye Biotech Inc. had the following equity account balances at December 31, 2022:
Preferred shares, $2.45, non-cumulative, | |||
Authorized: 20,000 shares | |||
Issued and outstanding: 5,000 shares | $ | 35,000 | |
Common shares, | |||
Authorized: Unlimited | |||
Issued and outstanding: 85,000 shares | 287,695 | ||
Retained earnings | 40,600 | ||
On February 1, 2023, 5,000 preferred shares were issued at $7.70 each. The board of directors declared and paid the annual cash dividend on the preferred shares on June 30, 2023, and a 12% common share dividend was declared and distributed on the same day when the market price per common share was $4.20. On October 1, 2023, 20,000 common shares were issued at $4.34 each. Profit earned during 2023 was $408,800. Required: Using the information provided, prepare the statement of changes in equity for the year ended December 31, 2023. (Amounts to be deducted should be indicated by a minus sign.)
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