At December 31, 2017, the following account balances were selected from the records of beverage maker Blake

Question:

At December 31, 2017, the following account balances were selected from the records of beverage maker Blake Corporation after all adjusting entries were completed:

Common shares (no-par value; authorized 100,000 shares;
issued 35,000 shares)..........................................................................$525,000
Contributed surplus...............................................................................180,000
Dividends declared and paid in 2017.....................................................28,000
Retained earnings, January 1, 2017........................................................76,000

Net income for the year was $48,000.

Required:

1. Prepare the statement of retained earnings for the year ended December 31, 2017, and the shareholders’ equity section of the balance sheet at December 31, 2017.

2. Compute the ROE ratio for 2017, assuming total shareholders’ equity on December 31, 2016 was $629,000. How does it compare to the ratios shown in Exhibit 11.7?

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

Fantastic news! We've Found the answer you've been seeking!