Northwood Architects Ltd. is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is an alphabetical list of its adjusted accounts at March 31, 2017, its fiscal year end. All accounts have normal balances.

There are 1,500 preferred and 75,000 common shares issued.
Instructions
(a) Prepare the statement of retained earnings, and the shareholders' equity section of the balance sheet.
(b) Calculate return on equity.
TAKING IT FURTHER
Why is it important that retained earnings be tracked and presented separately from share capital in the balance sheet?

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s 21,350 38,700 23,650 54,600 40,000 4,500 75,000 404,500 11,825 15,000 224,000 Accounts payable Accounts receivable Accumulated depreciation-equipment Income tax expense Insurance expense Interest expense Note payable Preferred shares Prepaid expenses Rent expense Retained earnings Salaries expense Salaries payable Supplies expense 16,53 6,550 50,000 Cash dividends-common Cash dividends-preferred Common shares Consulting revenue Depreciation expense Dividends payable 6,150 35,800 64,800 245,400 2,310 25,800