Pharma Shop Ltd. was a mid-sized public company that had been in operation for many years. On
Question:
1. In total, 200,000 common shares were issued at $30 per share.
2. The preferred dividend for the year was declared and paid.
3. A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one month after the declaration.
4. In early December 2011, a dividend of $1.50 per share was declared on the common shares. The date of record was December 15, 2011. The dividend will be paid the following year.
5. The company earned income of $14,820,000 and had another comprehensive loss of $145,000.
6. On December 31, 2011, the company declared a two-for-one stock split on common shares.
Required:
a. Use a spreadsheet or table format like the one in the practice problem to track all of the changes in the shareholders' equity accounts in 2011.
b. Prepare the statement of changes in shareholders' equity for 2011 and the shareholders' equity section of the statement of financial position as at the end of 2011. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...
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Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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