CarFind Inc. showed the following equity information at December 31, 2022. On April 1, 2023, 200,000 common
Question:
CarFind Inc. showed the following equity information at December 31, 2022.
On April 1, 2023, 200,000 common shares were issued at $0.60 per share. On June 1, the board of directors declared a 15% share dividend to shareholders of record on June 15; the distribution date was July 1. The market prices of the shares on June 1, June 15, and July 1 were $2.08, $1.76, and $1.96, respectively. On December 11, the board of directors declared a 2:1 share split to shareholders of record on December 15; the distribution date was December 20. Profit earned during the year was $1,400,000.
Required
Prepare the company’s equity section on the December 31, 2023, balance sheet.
Step by Step Answer:
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris