LO 7) E4-16 (Comprehensive Income) Rainy Day Umbrella Corporation had the following balances at l December 31,

2016 (all amounts in thousands): preferred shares, S3,375; common shares, $8,903; contributed surplus, S3,744, retained

earnings, $23,040; and umulated other comprehensive income, $2,568.

During the year ended December 31, 20i7, the company earned net income of $7,320,000, generated an unre-

alized holding gain on FV-OCI investments of S585,000, sold mmon shares of S285,000, and paid out dividends of

$30,000 and S20,000 to preferred and common shareholders, respectively.

Instructions

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

section of the Rainy Day Umbrella Corporation balance sheet as at December 31, 2017. Gains/losses on FV-OC

investments are recycled through net incme.