Northwood Architects Ltd. is a private company reporting under ASPE. It is authorized to issue an unlimited
Question:
Northwood Architects Ltd. is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is an alphabetical list of its adjusted accounts at March 31, 2021, its fiscal year end. All accounts have normal balances.
There are 1,500 preferred and 75,000 common shares issued.
Instructions
a. Prepare the statement of retained earnings, and the shareholders? equity section of the balance sheet.
b. Calculate return on equity. Note: No shares were issued during the year.
Taking It Further
Why is it important that retained earnings be tracked and presented separately from share capital in the balance sheet?
Step by Step Answer:
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak