Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $30 per share. As well, there were 5,400,000 preferred shares authorized, with 270,000 of them issued at $19 per share. The balance in retained earnings was $26,710,000. The balance in accumulated other comprehensive income was $524,000. The preferred shares pay an annual dividend of $2 per share. During 2020, the following transactions affected shareholders equity:

1. In total, 190,000 new common shares were issued at $35 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 $14,890,000 and had an other comprehensive loss of $165,000.
6.

On December 31, 2020, the company declared a two-for-one stock split on common shares.

please pay attention and solve the correct question :

image text in transcribed

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 common shares Common Shares Number of preferred shares Preferred 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

Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentShare CapitalShareholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Shareholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Share CapitalTotal Shareholders' Equity
$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentShare CapitalShareholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Shareholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Share CapitalTotal Shareholders' Equity
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentShare CapitalShareholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Shareholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Share CapitalTotal Shareholders' Equity $
Question 2 of 3 > - / 30 Year Ended December 31, 2020 Number of common shares Number of preferred shares Preferred Shares Common Shares $ $ Pharma Shop Ltd. Statement of Shareholders' Equity December 31, 2020 . + $ e Textbook and Media List of Accounts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of Fixed Income Securities

Authors: Frank Fabozzi, Steven Mann

8th Edition

0071768467, 978-0071768467

More Books

Students also viewed these Finance questions

Question

Relational Contexts in Organizations

Answered: 1 week ago