The shareholders' equity accounts of Kanada Inc. at September 30, 2013, are as follows: Preferred shares, $5

Question:

The shareholders' equity accounts of Kanada Inc. at September 30, 2013, are as follows: Preferred shares, $5 noncumulative, unlimited number authorized,

6,000 issued........................................................................$465,000

Common shares, unlimited number authorized, 25,000 issued...............900,000

Retained earnings...................................................................540,000

Accumulated other comprehensive income.......................................95,000

Kanada has a 30% income tax rate. During the following fiscal year, ended September 30, 2014, Kanada had the following transactions and events:

Mar. 14 Declared a 4% common stock dividend to shareholders of record at March 31, distributable on

April 5. The fair value of the common shares was $10 per share on March 14, $11 on March 31, and $12 on April 5.

July 7 It was discovered that the computer system was incorrectly aging accounts receivable and therefore overestimating bad debts. The total effect of the error on prior years' profit was an increase of $33,000 before income tax.

Aug. 1 Discovered a $54,000 overstatement of cost of goods sold in the prior year's income statement.

Sept. 20 Declared the annual dividend payable to the preferred shareholders of record on October 5, payable on October 31.

25 Announced a 2-for-1 common stock split. The market price of the common shares at the date of announcement was $15 per share.

30 Determined that other comprehensive income for the year was $27,000 and profit was $325,000, both before income tax.

Prepare a statement of changes in shareholders' equity for the year ended September 30, 2014.

Taking It Further

How does comprehensive income impact the shareholders' equity in the balance sheet? Is this the same for companies following ASPE?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...