Parfait Limited reports the following for 2017: sales revenue, $900,000; cost of sales, $750,000; operating expenses, $100,000;

Question:

Parfait Limited reports the following for 2017: sales revenue, $900,000; cost of sales, $750,000; operating expenses, $100,000; and unrealized gain on FV-OCI investments, $60,000. The company had January 1, 2017 balances as follows: common shares, $600,000; accumulated other comprehensive income, $250,000; and retained earnings, $900,000. The company did not issue any shares during 2017. On December 15, 2017, the board of directors declared a $300,000 dividend payable on January 31, 2018. Prepare a statement of changes in equity. Ignore income tax.

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...