Raiders Limited is a private company that follows ASPE. It

Raiders Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2017, there were 35,000 common and 1,000 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $105. The balance in the Retained Earnings account on January 1, 2017, was $287,000. During 2017, the company had profit of $125,000 and declared a total of $75,000 of dividends, of which $56,250 was paid during the year.

Instructions

(a) Prepare the shareholders' equity section of the balance sheet on December 31, 2017.

(b) Calculate return on equity for 2017. Assume there were no changes in the Common Shares and Preferred Shares accounts during the year.

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...
Related Book For answer-question

Accounting Principles

7th Canadian Edition Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

ISBN: 978-1119048473

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