undefined

Question 1 [33 points]

Callaho Inc. had the following balances in its equity accounts at December 31, 2014.

Common shares, unlimited shares authorized, 55,000 shares issued, and outstanding$550,000Retained earnings235,000

During 2015, the following equity transactions occurred: a. January 17 : A 10% share dividend was declared when the market value was $13 per share, to be paid on September 20. b. September 20 : Date of distribution regarding the 10% share dividend. c. December 31 : Closed the dividend account. d. December 31 : Closed the Income summary account, which has a credit balance of $150,000. a) Prepare journal entries to account for the transactions during 2015. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan).

General JournalPage GJ1DateAccount/ExplanationFDebitCredit

b) Prepare the company's statement of changes in equity for the year ended December 31, 2015. Please make sure your final answer(s) are accurate to the nearest whole number.

(select one)Statement of Changes in Equity(select one)

Common Shares

Retained Earnings

Total Equity

c) Prepare the company's equity section of the balance sheet for the year ended December 31, 2015. Please make sure your final answer(s) are accurate to the nearest whole number.

Callaho Inc.Equity Section of the Balance SheetDecember 31, 2015Contributed capital Common shares, unlimited shares authorized:

shares issued and outstanding

Retained earnings Total equity