Question 1

Riverbed Architects Ltd. is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is an alphabetical list of its adjusted accounts at March 31, 2021, its fiscal year end. All accounts have normal balances.

Accounts payable		$21,000		Income tax expense		$17,000
Accounts receivable		37,000		Insurance expense		6,100
Accumulated depreciationequipment		23,700		Interest expense		3,100
Cash		56,000		Notes payable		52,000
Cash dividendscommon		42,000		Preferred shares		60,000
Cash dividendspreferred		4,500		Prepaid expenses		6,200
Common shares		75,000		Rent expense		35,900
Consulting revenue		425,000		Retained earnings		43,700
Depreciation expense		12,000		Salaries expense		248,000
Dividends payable		16,000		Salaries payable		2,200
Equipment		226,000		Supplies expense		24,800

There are 1,500 preferred and 75,000 common shares issued.