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 5,700,000 shares issued at an average value of $27 per share. As well, there were 5,500,000 preferred shares authorized, with 275,000 of them issued at $16 per share. The balance in retained earnings was $26,600,000. The balance in accumulated other comprehensive income was $536,000. The preferred shares pay an annual dividend of $2 per share. During 2020, the following transactions affected shareholders' equity: 1. 2. 3. 4. 5. 6. In total, 190,000 new common shares were issued at $32 per share. The preferred dividend for the year was declared and paid. A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one month after the declaration. In early December 2020, a dividend of $1.50 per share was declared on the common shares. The date of record was December 15, 2020. The dividend will be paid the following year. The company earned a net income of $14,950,000 and had an other comprehensive loss of $170,000. On December 31, 2020, the company declared a two-for-one stock split on common shares. (b) Prepare the statement of changes in shareholders' equity for 2020 and the shareholders' equity section of the statement of financial position as at the end of 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.) (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).) Pharma Shop Ltd. Statement of Changes in Shareholders' Equity Year Ended December 31, 2020 Number of preferred Preferred Common Shares shares Shares Number of common shares Retained Earnings Accumulated other comprehensive income Total Dec. 31, 2019 Common shares issued Cash dividends Stock dividend - common shares Net income Other comprehensive loss Stock split on common shares Dec. 31, 2020 Pharma Shop Ltd. Statement of Shareholders' Equity December 31, 2020