Biology Forums - Study Force

The following statement of shareholders' equity for the Q8 Corporation is missing explanations of the events that led to the changes in the shareholders' equity accounts. Write a brief explanation for each change.

   Common shares   Contributed surplus   Retained Earnings   Accumulated Other Comprehensive Income   Balance
Balance   $190,000   $0   $65,000      $255,000
a.   74,000            74,000
b.         86,500      86,500
c.         (12,800)      (12,800)
d.   30,000      (30,000)      -0-
e.            3,000   3,000
Balance   $294,000   $0   $108,700   $3,000   $405,700

a. Issued $74,000 of common shares.
b. Income earned was $86,500.
c. Cash dividends declared, $12,800.
d. Distributed common shares dividend, $30,000 market value of common shares.
e. Unrealized fair value gain or foreign currency translation adjustment