On January 1, 2014, Chamblin Inc. had the following equity balances. Share CapitalOrdinary (400,000 shares issued) CHF800,000

Question:

On January 1, 2014, Chamblin Inc. had the following equity balances.

Share Capital—Ordinary (400,000 shares issued) CHF800,000
Share Premium—Ordinary 500,000
Ordinary Share Dividends Distributable 120,000
Retained Earnings 600,000

During 2014, the following transactions and events occurred.
1. Issued 60,000 CHF2 par value ordinary shares as a result of 15% share dividend declared on December 15, 2013.
2. Issued 30,000 ordinary shares for cash at CHF4 per share.
3. Purchased 25,000 ordinary shares for the treasury at CHF5 per share.
4. Declared and paid a cash dividend of CHF111,000.
5. Sold 8,000 treasury shares for cash at CHF5 per share.
6. Earned net income of CHF360,000.

Instructions
Prepare a statement of changes in equity for the year.

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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...