In: Accounting
On December 31, 2018, Fax Company Inc., had the following Shareholder Equity balances:
Preferred Shares $400,000
Common Shares $750,000
Retained Earnings 1,200,000
Contributed Surplus 150,000
Accumulated Other Comprehensive Income 75,000
During 2019, the following took place:
Fax Company Inc earned net income of $175,000 and paid cash dividends in the amount of $45,000 on its common shares.
In addition, the company declared a cash dividend in the amount of $30,000 on its preferred shares.
Also during 2019, XYZ experienced an unrealized foreign exchange gain of $25,000 upon translation of its foreign subsidiary's results.
Required
In good form, prepare a Statement of Changes in Equity for Fax Company Inc. for 2019.
Fax Company | ||||||
Statement of changes in equity for the year ended 2019 | ||||||
Common Shares | Preferred Shares | Share Premium | Retained Earnings | Other Components of Income | Total | |
Balance as on 01.Jan.2019 | 750,000 | 400,000 | 150,000 | 1,200,000 | 75,000 | 2,575,000 |
Transfer to retained earnings | 175,000 | 175,000 | ||||
Dividend on preferrence shares | (30,000) | (30,000) | ||||
Dividend on Common Shares | (45,000) | (45,000) | ||||
Gain on Foreign exchange | 25,000 | 25,000 | ||||
Balance at 31.Dec.2019 | 750,000 | 400,000 | 150,000 | 1,300,000 | 100,000 | 2,700,000 |