Question: On June 30 2017 Utusivik s equity section was as follows

On June 30, 2017, Utusivik's equity section was as follows:
Preferred shares (500,000 shares authorized, 25,000 outstanding)... $ 2,000,000
Share capital (5,000,000 shares authorized, 1,000,000 outstanding)... 8,000,000
Accumulated other comprehensive income............. 85,000
Retained earnings...................... 11,900,000
During the year ended June 30, 2018, Utusivik Inc. (Utusivik) had the following equity related transactions and economic events.
i. On August 1, 2017, Utusivik issued 500,000 common shares for $22 each.
ii. On November 30, 2017, Utusivik issued 50,000 preferred shares for $80 each.
iii. On December 31, 2017, Utusivik declared and paid a dividend of $0.75 per com mon share.
iv. On April 30, 2018, Utusivik declared a three-for-one stock split.
v. On June 29, 2018, Utusivik obtained the rights to a patent in exchange for 60,000 Utusivik common shares. The market value of Utusivik stock on June 30, 2018 was $16 per share.
vi. On June 30, 2018, Utusivik declared and paid a dividend to preferred shareholders of $1.50 per share.
vii. On June 30, 2018, Utusivik declared and paid a dividend of $0.85 per common share.
viii. Net income for 2018 was $4,500,000.
ix. Comprehensive income for 2018 was $4,600,000.

a. Prepare the journal entries required to record items (i) through (vii).
b. Prepare the equity section of Utusivik's balance sheet on June 30, 2018 and provide comparative information for June 30, 2017.
c. Show the equity section of Utusivik's balance sheet as it would have been reported in the June 30, 2017 annual report. Explain the difference between the equity section for 2017 as reported in the 2018 annual report versus the 2017 annual report.
d. Calculate earnings per share and return on shareholders' equity for the year ended June 30, 2018. If earnings per share for 2017 had been reported as $1.80 per share, what amount would be reported for 2017 in the 2018 annual report?
e. How did the stock split affect the performance of Utusivik?

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