Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Atlantic Refinery Corp. (ARC) is a public company headquartered in St. Johns, Newfoundland. On 31 December 20X5, the post-closing trial balance included the following

The Atlantic Refinery Corp. (ARC) is a public company headquartered in St. Johns, Newfoundland. On 31 December 20X5, the post-closing trial balance included the following accounts (in thousands of Canadian dollars):

Debit

Credit

Investment in Mongolian subsidiary

$

72,600

Provision for future site restoration

$

34,400

Common shares

176,000

Translation differential from Mongolian subsidiary

12,200

Convertible bonds

86,900

Equity portion of convertible bonds

2,000

Contributed surpluspremium on common shares issued

35,000

Goodwill (from purchase of Mongolian subsidiary)

18,400

Investment in shares of upstream affiliate

36,600

Retained earnings

533,000

Trademarks

6,700

The following transactions and events occurred during 20X6:

  1. Net income amounted to $37 million.
  2. The value of trademarks was written off after ARC lost a patent protection lawsuit.
  3. An additional $1.5 million of convertible bonds was transferred from the debt portion to the equity portion.
  4. An accounting policy was changed due to a new IFRS taking effect in 20X6 the effect of retrospective restatement was to reduce prior years earnings by an aggregate amount of $43 million.
  5. The future liability for site restoration was increased by $2 million.
  6. Common shares with a stated value of $15 million were repurchased on the open market for $20 million and cancelled. The original issue price of the shares amounted to $17, of which $2 million had been credited to contributed surplus.
  7. A new class of preferred shares was issued to a major public sector pension plan for $88 million to finance future development.
  8. Dividends totalling $26 million were issued during the year. Of that amount, $2 million were declared on 24 December 20X6, payable to shareholders of record on January 15, 20X7.
  9. The translated amount of ARCs investment in Mongolian subsidiary declined by $4 million due to a rise in the value of the Canadian dollar.

Required: On the following page, prepare a statement of changes in equity for Atlantic Refinery Corp. for the year ended 31 December 20X6. (Enter answer in thousands, not in million or whole Canadian dollars. Negative amounts should be indicated by a minus sign.)

____________________________________________________________________________________________

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

Auditing Information Systems

Authors: Jack J. Champlain

2nd Edition

0471281174, 978-0471281177

More Books

Students also viewed these Accounting questions