Shredders Wintersports Inc. reported these comparative shareholders’ equity data:

During 2020, Shredders Wintersports Inc. completed these transactions and events:

a. Net income, $1,430,000.

b. Cash dividends, $650,000.

c. Issuance of common shares for cash, 3,000 shares at $60.00 per share.

d. Issuance of common shares to purchase another company (Shredders debited the Investments account), 15,000 shares at $70.00 per share. 

Required

Without making journal entries, show how Shredders Wintersports Inc.’s 2020 transactions and events accounted for the changes in the shareholders’ equity accounts. For each shareholders’ equity account, start with the December 31, 2019, balance and work toward the balance at December 31, 2020.

Transcribed Image Text:

December 31, 2020 2019 Common shares $1,530,000 $ 300,000 Retained earnings 2,318,000 1,538,000