Question 4: 6 Marks

Complete the Equity section of the Balance Sheet for Moonlite Corporation shown below.

Moonlite Corporation Equity Section of the Balance Sheet As of December 31, 2014
Contributed Capital:		Amount
Preferred shares, $ 1.50 cumulative, unlimited shares authorized, 9,000 shares issued and outstanding	A
Preferred shares $ 2.00 non-cumulative, unlimited shares authorized, 12,000 shares issued and outstanding.	B
Common shares, unlimited shares authorized, ______ shares issued and outstanding	C	212,800
Total Contributed Capital	D
Retained Earnings	E
Total Equity	F

1. Calculate amount A assuming an average issue price of $ 12.00 per share

2. Calculate amount B assuming an average issue price of $ 25.00 per share.

3. Calculate the number of Common shares issued and outstanding assuming an average issue price of $ 5.60 per share.

4. Calculate amount D

5. Calculate amount E assuming the following:

1. Net income after taxes for the first three years of operations at Moonlite Corporation amounted to $ 65,000 in 2012, $ 142,000 in 2013, and $ 159,000 in 2014.
2. Dividends totaling $ 80,000 were declared and paid in 2014. No other dividends were declared over the three year period.

6. Calculate amount F

Worksheet if Required