Rainy Day Umbrella Corporation had the following balances at December 31, 2016 (all amounts in thousands): preferred

Question:

Rainy Day Umbrella Corporation had the following balances at December 31, 2016 (all amounts in thousands): preferred shares, $3,375; common shares, $8,903; contributed surplus, $3,744; retained earnings, $23,040; and accumulated other comprehensive income, $2,568.

During the year ended December 31, 2017, the company earned net income of $7,320,000, generated an unrealized holding gain on FV-OCI investments of $585,000, sold common shares of $285,000, and paid out dividends of $30,000 and $20,000 to preferred and common shareholders, respectively.

Instructions

Prepare a statement of changes in equity for the year ended December 31, 2017, as well as the shareholders' equity section of the Rainy Day Umbrella Corporation balance sheet as at December 31, 2017. Gains/losses on FV-OCI investments are recycled through net income.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...