Northwest Territories Inc. has the following shareholders' equity information: Northwest's incorporation authorizes the company to issue 10,000

Question:

Northwest Territories Inc. has the following shareholders' equity information: Northwest's incorporation authorizes the company to issue 10,000 $5 cumulative preferred shares and 400,000 common shares. The company issued 1,000 preferred shares at $100 per share. It issued 100,000 common shares for a total of $370,000. The company's Retained Earnings balance at the beginning of 2014 was $40,000, and net income for the year was $90,000. During 2014, Northwest declared the specified on preferred shares and a $0.50 per-share on common shares. Preferred dividends for 2013 were in arrears.
Requirement
Prepare the shareholders' equity section of Northwest Territories Inc.'s at December 31, 2014. Show the computation of all amounts. Journal entries are not required.
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... 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...