The Sawgrass Corporation, a public company, reported the following balances at January 1, 2014: Common Shares-No Par

Question:

The Sawgrass Corporation, a public company, reported the following balances at January 1, 2014:

Common Shares-No Par Value (32,000 shares issued, unlimited authorized) ............ $ 800,000

Retained Earnings ................................................................................................................. 1,500,000

Contributed Surplus ................................................................................................................. 145,000

Accumulated Other Comprehensive Income ......................................................................... 40,000

During the year ended December 31, 2014, the following summary transactions occurred:

Net income earned during the year ........................................................................................... $400,000

Holding gain on fair value-other comprehensive income investments ....................................... 25,000

Reduction of contributed surplus during the year due to repurchase of common shares ........... 17,500

Reduction of common shares account balance during the year due to repurchase of 1,000 common shares ........................................................................................................................................................................ 25,000

Dividends paid during the year on common shares ............................................................................. 70,000

Issued 2,000 common shares during the year ................................................................................... 100,000

(a) Prepare a statement of changes in shareholders' equity for the year as required under IFRS.

(b) Prepare the shareholders' equity section of the statement of financial position at December 31.

(c) How would the answer to parts (a) and (b) be different if Sawgrass prepared financial statements in accordance with ASPE?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...