On December 31, 2018, Fax Company Inc., had the following Shareholder Equity balances: Preferred Shares $400,000...

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.

Expert Solution

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

ekkarill92 answered 2 years ago

Waxfastic Corporation had the following balances on December 31, 2018, its year-end (in thousands): preferred shares...

Waxfastic Corporation had the following balances on December 31, 2018, its year-end (in thousands): preferred shares $3,012; common shares $4,718; contributed surplus $1,750; retained earnings $16,791; and accumulated other comprehensive income $514. During the year ended December 31, 2019 the company earned net income of $3,613,000, issued common shares for $30,000, and declared and paid dividends of $14,000 and $5,000 to preferred and common shareholders respectively. Waxfastic follows IFRS. Required: Prepare a statement of changes in equity for 2019, as...

Zen Aerospace Corporation reported the following equity account balances on December 31, 2016: Preferred shares, $3.60...

Zen Aerospace Corporation reported the following equity account balances on December 31, 2016: Preferred shares, $3.60 cumulative, unlimited shares authorized $ 0 Common shares, unlimited shares authorized, 27,500 shares issued and outstanding 759,000 Retained Earnings 339,000 In 2017, the company had the following transactions affecting shareholders and the shareholders’ equity accounts: Jan. 1 Purchased and retired 3,500 common shares at $36 per share. 14 The directors declared a 12% share dividend distributable on February 5 to the January 30 shareholders...

The shareholders' equity accounts of Crane Inc. at December 31, 2020, are as follows: Preferred shares,...

The shareholders' equity accounts of Crane Inc. at December 31, 2020, are as follows: Preferred shares, $3 noncumulative, unlimited number authorized, 2,000 issued $200,000 Common shares, unlimited number authorized, 160,000 issued 800,000 Retained earnings 520,000 Accumulated other comprehensive loss (54,000 ) Crane has a 40% income tax rate. During the following fiscal year, ended December 31, 2021, the company had the following transactions and events: Feb. 1 Repurchased 10,000 common shares for $40,000. July 12 Announced a 2-for-1 preferred stock...

On December 31, 2015, Alpha had the following balances (all balances are normal): Accounts Amount Preferred...

On December 31, 2015, Alpha had the following balances (all balances are normal): Accounts Amount Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding) $1,000,000 Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) $1,000,000 The following events occurred during 2015 and were not recorded: On January 1, Alpha declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share...

Waddell Company had the following balances in its accounting records as of December 31, 2018: Assets...

Waddell Company had the following balances in its accounting records as of December 31, 2018: Assets Liabilities and Equity Cash $ 54,000 Accounts Payable $ 23,000 Accounts Receivable 44,000 Common Stock 88,000 Land 31,000 Retained Earnings 18,000 Totals $ 129,000 $ 129,000 The following accounting events apply to Waddell Company’s 2019 fiscal year: Jan. 1 Acquired $52,000 cash from the issue of common stock. Feb. 1 Paid $5,400 cash in advance for a one-year lease for office space. Mar. 1...

Ace Inc. had the following balances at December 31, 2018: Accounts Receivable $1,500,000 DR Allowance for...

Ace Inc. had the following balances at December 31, 2018: Accounts Receivable $1,500,000 DR Allowance for Doubtful Accounts $ 90,000 CR The following transactions occurred in 2019: Sales for the year totaled $20,000,000. 90% of the sales were on account. Cash collections in the year totaled $17,700,000. During the year, Ace wrote off specific accounts totaling $250,000. A bankrupt customer whose account had been written off in 2014 was able to re-pay $20,000 of its account receivable. During the year,...

Flint Limited’s ledger shows the following balances on December 31, 2017: Preferred shares outstanding: 15,000 shares...

Flint Limited’s ledger shows the following balances on December 31, 2017: Preferred shares outstanding: 15,000 shares $ 315,000 Common shares outstanding: 38,000 shares 2,698,000 Retained earnings 988,800 a) Assuming that the directors decide to declare total dividends in the amount of $494,400, determine how much each class of shares should receive if the preferred shares are cumulative and fully participating. Note that one year’s dividends are in arrears on the preferred shares, which pay a dividend of $1.05 per share....

Nittany, Inc. had the following balances on its balance sheet: Assets Liabilities December 31, 2018 $300,000...

Nittany, Inc. had the following balances on its balance sheet: Assets Liabilities December 31, 2018 $300,000 $250,000 December 31, 2019 $400,000 $320,000 During 2019, Nittany, Inc. had revenues of $850,000 and expenses of $650,000. No new stock was issued. The amount of dividends for 2019 was ________.

At December 31, 2017, Blue Spruce Corporation had the following shares outstanding: 7% cumulative preferred shares,...

At December 31, 2017, Blue Spruce Corporation had the following shares outstanding: 7% cumulative preferred shares, 107,100 shares outstanding $10,710,000 Common shares, 4,190,000 shares outstanding 20,950,000 During 2017, the corporation’s only share transaction was the issuance of 370,000 common shares on April 1. During 2017, the following also occurred: Income from continuing operations before tax $22,800,000 Discontinued operations (loss before tax) 3,401,000 Preferred dividends declared 749,700 Common dividends declared 2,130,000 Effective tax rate 40% Calculate earnings per share information as...

Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2019 Contributed capital: Preferred shares,...

Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2019 Contributed capital: Preferred shares, $1.2 cumulative, unlimited shares authorized; 11,000 shares issued and outstanding $ 383,000 Common shares, unlimited shares authorized; 66,000 shares issued and outstanding 726,000 Total contributed capital $ 1,109,000 Retained earnings 369,000 Total equity $ 1,478,000 In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts: 2020 Jan. 1 Sold 21,000 common shares at $9.74 per share. 5 The...

Question