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Sunland Corporations trial balance at December 31, 2021, is presented below. SUNLAND CORPORATION Trial Balance December 31, 2021 Debit Credit Cash $ 48,000 Accounts receivable

Sunland Corporation’s trial balance at December 31, 2021, is presented below.

SUNLAND CORPORATION
Trial Balance
December 31, 2021
DebitCredit
Cash$ 48,000
Accounts receivable51,000
Allowance for doubtful accounts$ 2,500
Merchandise inventory22,700
Investment in associate85,000
Investment at FVTOCI—equity30,000
Land90,000
Building200,000
Accumulated depreciation—building40,000
Equipment40,000
Accumulated depreciation—equipment15,000
Accounts payable18,775
Income tax payable4,500
Bonds payable (6%, due January 1, 2026)126,025
Common shares, unlimited number of no par value shares authorized, 100,000 issued100,000
Retained earnings110,775
Accumulated other comprehensive income5,000
Sales750,000
Cost of goods sold370,000
Operating expenses180,000
Interest revenue375
Interest expense6,250
Income tax expense50,000
Total$1,172,950$1,172,950

All transactions and adjustments for 2021 have been recorded and reported in the trial balance except for the items described below.

Jan. 7Issued 1,200 preferred shares for $25,000. In total, 100,000, $2, noncumulative, convertible, preferred shares are authorized. Each preferred share is convertible into five common shares.
Mar. 16Purchased 800 common shares of Osborne Inc., to be held for trading purposes, for $25 per share.
July 1Purchased $100,000 Solar Inc. 10-year, 5% bonds at 108.2, when the market interest rate was 4%. Interest is received semi-annually on July 1 and January 1. Sunland purchased the bonds to earn interest.
Aug. 2Sold the Osborne common shares for $26 per share.
5Invested $20,000 in a money-market fund.
Sept. 25600 of the preferred shares issued on January 7 were converted into common shares.
Oct. 24Cashed in the money-market fund, receiving $20,000 plus $200 interest.
Nov. 30Obtained a $50,000 bank loan by issuing a three-year, 6% note payable. Sunland is required to make equal blended payments of $1,521 at the end of each month. The first payment was made on December 31. Note that at December 31, $15,757 of the note payable is due within the next year.
Dec. 1Declared the annual dividend on the preferred shares on December 1 to shareholders of record on December 23, payable on January 15.
31Sunland owns 40% of RES. RES earned $22,400 and paid dividends of $1,400 in 2021. The fair value of the RES investment was $98,000.
31Semi-annual interest is receivable on the Solar Inc. bonds on January 1, 2022. The bonds were trading at 106 on December 31, 2021.
31The annual interest is due on the bonds payable on January 1, 2022. The par value of the bonds is $130,000 and the bonds were issued when the market interest rate was 7%.
31The fair value of the long-term investment at FVTOCI—equity was $28,200. Ignore income tax calculation.

Question Part Score

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Prepare the statement of comprehensive income for Sunland. For the purposes of this question, ignore the income tax on other comprehensive income and accumulated other comprehensive income. (Round answers to 0 decimal places, e.g. 5,275.)

Prepare the statement of changes in shareholders’ equity for Sunland. For the purposes of this question, ignore the income tax on other comprehensive income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 0 decimal places, e.g. 5,275.)

SUNLAND CORPORATION
Statement of Changes in Shareholders’ Equity
Year Ended December 31, 2021December 31, 2021Month Ended December 31, 2021
Preferred SharesCommon SharesRetained EarningsAccumulated Other
Comprehensive Income
Total
Balance, January 1, 2021$$$$$
Issued shares for cash
Preferred shares converted
Cash dividends–preferred
Comprehensive income
Balance, December 31, 2021$$$$$

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