The shareholders equity accounts of Kanada Inc. at September 30, 2023, are as follows: Preferred shares, $5
Question:
The shareholders’ equity accounts of Kanada Inc. at September 30, 2023, are as follows:
Preferred shares, $5 noncumulative, unlimited number authorized, 6,000 issued .......... $465,000
Common shares, unlimited number authorized, 25,000 issued .............................................900,000
Retained earnings ...........................................................................................................................540,000
Accumulated other comprehensive income ................................................................................95,000
Kanada has a 30% income tax rate. During the following fiscal year ended September 30, 2024, Kanada had the following transactions and events:
Mar. 14 Declared a 4% common stock dividend to shareholders of record at March 31, distributable on April 5. The fair value of the common shares was $35 per share on March 14, $37 on March 31, and $38 on April 5.
Aug. 1 Reacquired 2,000 common shares for $80,000.
25 Announced a 2-for-1 common stock split. The market price of the common shares at the date of announcement was $62 per share.
Sept.25 Declared the annual dividend payable to the preferred shareholders of record on October 5, payable on October 31.
Sept.30 Determined that other comprehensive income for the year was $27,000 and profit was $325,000, both before income tax.
Instructions
Prepare a statement of changes in shareholders’ equity for the year ended September 30, 2024. (Round per share amounts to the nearest cent.)
How does comprehensive income impact the shareholders’ equity in the balance sheet? Is this the same for companies following ASPE?
Step by Step Answer:
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak