The company's total shareholders' equity as of 12/31/2020 is $1,777,000 Common stock; par value of $2;...

The company's total shareholders' equity as of 12/31/2020 is $1,777,000 Common stock; par value of $2; Auth 500,000 and issued/outstanding 100,000 @ an average issue price of $4.75. Accumulted other comprehensive income is $180,000. The balance in shareholders' equity is retained earnings.

During 2021: Sales revenue $880,000, interest revenue $30,000 ; rent revenue $160,000; Dividend Revenue $80,000; sales Returns & Allowances $25,000; Sales discounts $70,000; COGS $350,000; Selling exp $100,000; General Administrative expenses $80,000; Interest expense $70,000; Loss on sale of Investments $60,000; Restructuring Costs $75,000; Gain on sale of compenant that qualifies as a discontinued ops $150,000; Write down of inventory $50,000; foreign currency translation gain $20,000; unrealized gain in value of land $50,000; .Unrealized gain in the value of patents $50,000; unrealized loss in value of available for sale securities $60,000 ;

Additional information: Tax rate is 20% The company issues 50,000 shares on 10/1/21 for $250,000. The company issues 20,000 shares on 7/1/21 for equipment that has a fair value of $100,000 The company declared dividends of $100,000 of which $25,000 will be paid on 1/31/22.

2.) Prepare a statement of shareholders' equity.

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The company's
Statement of shareholders' equity	Common Stock	Retained Earnings	Accumulated other comprehensive income	Total
Opening Balance	475,000.00	1,115,000.00	180,000.00	1,770,000.00
Add: Shares issued in cash	250,000.00	-	-	250,000.00
Add: Shares issued against property	10,000.00	-	-	10,000.00
Add: Net Income for the year	-	420,000.00	-	420,000.00
Less: Dividends	-	(100,000.00)	-	(100,000.00)
Less: Other comprehensive loss for the year	-	-	(140,000.00)	(140,000.00)
Closing Balance	735,000.00	1,435,000.00	40,000.00	2,210,000.00


Multiple step income statement	Amount $	Amount $
Sales	880,000.00
Less: Sales Returns & Allowances	(25,000.00)
Less: Sales Discounts	(70,000.00)
Net Sales Revenue		785,000.00
Less: Cost of Goods Sold		350,000.00
Gross profit		435,000.00
Less: Operating expenses
Selling expense	100,000.00
Administrative expense	80,000.00
Total Operating expenses		180,000.00
Operating income		255,000.00
Other income (expenses)
Interest revenue	30,000.00
Rent revenue	160,000.00
Dividend revenue	80,000.00
Loss on sale of investments	(60,000.00)
Foreign currency translation gain	20,000.00
Restructuring Costs	(75,000.00)
Write down of inventory	(50,000.00)
Interest expense	(70,000.00)	35,000.00
Income from continuing operations		290,000.00
Add: Gain on sale of component that qualifies as a discontinued ops		150,000.00
Net income		440,000.00
Other comprehensive income
Unrealized gain in value of land	50,000.00
Unrealized gain in value of patents	50,000.00
Unrealized loss in value of available for sale securities	(60,000.00)
Total comprehensive income (loss)		40,000.00
Comprehensive Net Income		480,000.00

ekkarill92 answered 2 years ago

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The company's total shareholders' equity as of 12/31/2020 is $1,777,000 Common stock; par value of $2;...

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