Pharma Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2019, it had an unlimited number of common shares authorized and 5,600,000 shares issued at an average value of $27 per share. As well, there were 5,400,000 preferred shares authorized, with 270,000 of them issued at $18 per share. The balance in retained earnings was $26,650,000. The balance in accumulated other comprehensive income was $521,000. The preferred shares pay an annual dividend of $2 per share. During 2020, the following transactions affected shareholders equity:

1.		In total, 170,000 new common shares were issued at $32 per share.
2.		The preferred dividend for the year was declared and paid.
3.		A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one month after the declaration.
4.		In early December 2020, a dividend of $1.60 per share was declared on the common shares. The date of record was December 15, 2020. The dividend will be paid the following year.
5.		The company earned a net income of $15,060,000 and had an other comprehensive loss of $130,000.
6.		On December 31, 2020, the company declared a two-for-one stock split on common shares.

A) Use a spreadsheet or table format like the one in the first practice problem to track all of the changes in the shareholders equity accounts in 2020.

B) Prepare the statement of changes in shareholders equity for 2020 (Hint: The statement of changes in shareholders equity will be similar to the table from part a but similar transactions, such as dividends, will be grouped into one line.)

C) Prepare the shareholders equity section of the statement of financial position as at the end of 2020.

Number of common shares Number of preferred Shares Preferred shares Retained Earnings Accumulated other comprehensive income Date Common Shares Total Dec 31, 2019 5600000 $ 151,200,000 270,000 $ 4,860,000 $ 26,650,000 $ 521,000 $ 183,231,000 1. issued common shares 170000 5,440,000 5,440,000 2. preferred share dividends i i (540,000) (540,000) 3. 10% stock dividend on common shares (18,480,000) i (18,480,000) 4. common share dividend 5a. net income for year i 15.060,000 15,060,000 5b. other comprehensive (loss) for year i (130,000) (130,000) 6. two-for-one stock split on common shares 11540000 156,640,000 i i i i Dec. 31, 2020 11540000 $ 156,640,000 270,000 $ 4,860,000 7,630,000 15,451,000 $ 184,581,000 Number of common shares Pharma Shop Ltd. Statement of Changes in Shareholders' Equity Year Ended December 31, 2020 Number of preferred Preferred shares Shares 270,000 $ 4,860,000 Accumulated other comprehensive income Retained Earnings 26,650,000 Common Shares Total Dec 31, 2019 5600000 $ 151,200,000 $ $ 521,000 $ 183,231,000 Common shares issued 170000 5,440,000 5,440.000 Cash dividends i (540,000) (540,000) Stock dividend - common shares (18,480,000) (18.480,000) et income 15,060,000 15,060,000 Other comprehensive loss (130,000) (130,000) Stock split on common shares 11540000 156,640,000 270,000 $ 4,860,000 $ 7,630,000 $ 15,451,000 $ $ 184,581,000 Dec. 31, 2020 11540000 156,640,000 Pharma Shop Ltd. Statement of Shareholders' Equity December 31, 2020 Preferred Shares $ 4,860,000 Common Shares Retained Earnings ta Total Shareholders' Equity