Novak Limited has two classes of shares outstanding: preferred ($6 dividend) and common. At December 31, 2019, the following accounts and balances were included in shareholders' equity: $ 3,000,000 25,000,000 200,000 Preferred shares, 310,000 shares issued (authorized, 1,000,000 shares) Common shares, 1,000,000 shares (authorized, unlimited) Contributed surplus-preferred Contributed surplus-common Retained earnings Accumulated other comprehensive income 2,000,000 5,500,000 250,000 The contributed surplus accounts arose from net excess of proceeds over cost on previous cancellations of shares of each respective class. The following transactions affected shareholders' equity during 2020: Jan. 1 Feb. 1 June 1 July 1 Dec. 31 Issued 25,000 preferred shares at $25 per share. Issued 50,000 common shares at $20 per share. Declared a 2-for-1 stock split (common shares). Purchased and retired 30,000 common shares at $15 per share. Net income is $2,100,000; comprehensive income is $2,050,000. The preferred dividend is declared, and a common dividend of $0.50 per share is declared. Dec. 31 Assume that Novak follows IFRS. Prepare the statement of changes in shareholders' equity for the company at December 31, 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round intermediate calculations to 2 decimal places, e.g. 52.75 and all other answers to O decimal places, e.g. 5,275.) Preferred Shares Commor Number of Shares Number of Shares Share Capital Balance January 1, 2020 $ Issued preferred shares Issued common shares 2-for-1 stock split Reacquired common shares Declared dividends - preferred Declared dividends - common Net income Other comprehensive income Balance December 31, 2020 $ Prepare the statement of changes in shareholders' equity for the company at December 31, 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round intermediate calculations to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.) NOVAK LIMITED Statement of Changes in Shareholders' Equity n Shares Contrib. Surplus - Preferred Contrib. Surplus - Common Retained Earnings Share Capital $ $ $ $ $ $ $ $ $ $ Prepare the statement of changes in shareholders' equity for the company at December 31, 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round intermediate calculations to 2 decimal places, e.g. 52.75 and all other answers to O decimal places, e.g. 5,275.) Contrib. Surplus - Common Retained Earnings Acc. Other Comprehensive Income Total $ $ $ $ $ $ $ $ Prepare the shareholders' equity section of the SFP for the company at December 31, 2020. NOVAK LIMITED Shareholders' Equity $ $ Prepare the journal entry for the repurchase of 30,000 common shares on July 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 2 decimal places, e.g. 52.75 and all other answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit July 1 Prepare the journal entry for the repurchase of 30,000 common shares assuming instead that the repurchase took place on May 31 at the same repurchase price of $15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round intermediate calculations to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation May 31 What effect will the change in the date have on total shareholders' equity? There would be total shareholders' equity
