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Question 3: 20 marks Michele is considering the Shareholders' Equity section of the balance sheet, specifically the balances in Share Capital and Retained Earnings. Relevant

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Question 3: 20 marks Michele is considering the Shareholders' Equity section of the balance sheet, specifically the balances in Share Capital and Retained Earnings. Relevant data during the year are as follows: . On February 3, 2020, Foot Fault declared a dividend for the shareholders of record on February 17, 2020. The cash dividend payment was disbursed on March 16, 2020. This was the only dividend declared during the year. On August 4, 2020, Foot Fault issued new, incremental common shares by selling these shares on the Toronto Stock Exchange. This was the only share issuance during the year (there were no share repurchases during the year, nor any other transactions affecting the Share Capital Account). See the partial Balance Sheet (Shareholder's Equity section only) below for additional information. Documents (we will call them "Pieces of Evidence) provided to Michele by Foot Fault are: General: Articles of incorporation, the bylaws, and the minutes of the board of directors from the inception of the corporation Share Capital: Minutes from the Board of Directors from July 3, 2020 (approval for sale of new shares). The corporation's share certificate stub book including all share certificate numbers. Transactions in the Share Capital account from the inception of the corporation Retained Earnings: A continuity schedule of Retained Earnings transactions from the inception of the corporation Minutes from the Board of Directors from February 3, 2020 (dividend declaration) Transactions in the Retained Earnings account from the inception of the corporation, specifically including disbursements of dividend payments. Below is a partial Balance Sheet for Foot Fault, for 2020 Draft statements and 2019 Audited Statements: Foot Fault Partial Balance Sheet (Shareholders Equity Section only) For the Years ended October 31 2020 Draft 2019 Audited $10,800,000 $10,000,000 Shareholders' Equity Share Capital 15,000,000 no par value Common shares authorized Issued Oct. 31, 2020 Issued Oct. 31, 2019: 1,000,000 Retained Earnings TOTAL Shareholders' Capital $3,250,000 $3,000,000 $14,050,000 $13,000,000 OTHER DATA Net Income reported for the year ended Oct. 31, 2020 $1,200,000 Issues new shares (sold to market) on August 4, 2020 Price per new share $16.00 No shares were purchased or retired during the year by Foot Fault, and aside from the above noted share issuance, there were no other transactions affecting the Share Capital account. A dividend was declared on February 3, 2020, Required: a) Calculate the total dollar amount of Dividends declared during the Year Ended October 31, 2020 by Foot Fault (only the total dollar value, no need to calculate the per share amount) b) Suggest one (1) audit procedure for the audit of Foot Fault's Retained Earnings, given the above dividend transaction c) Calculate the number of new, incremental common shares issued during the Year Ended October 31, 2020 by Foot Fault, and state the resulting number of common shares as at October 31, 2020. d) Suggest three (3) audit procedures for the audit of Foot Fault's Share Capital account, given the above share issuance transaction Answer sub-questions (a) and (c) in sentence form. For (b) and (d), identify the assertion(s) being proven, and identify which Pieces of Evidence serve as appropriate evidence consistent with the response template table provided separately

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