Chapter 6
Corporations: Contributed Capital and Dividends
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d) Prepare the shareholders’ equity section of the balance sheet as at May 31, 2016 (after the
stock split).
AP-15B
(
5
6
)
At the end of Pataya Inc.’s third fiscal quarter in 2016, the shareholders’ equity section of the
balance sheet was as follows.
Pataya Inc.
Shareholders' Equity
As at September 30, 2016
Share Capital
Common Shares, unlimited authorized,
$960,000
60,000 issued and outstanding
Retained Earnings
580,000
Total Shareholders’ Equity
$1,540,000
In the fourth quarter of 2016, the following entries related to its equity accounts were
recorded.
Date
Account Title and Explanation
Debit
Credit
Oct 2
Retained Earnings
110,000
Dividends Payable
110,000
Oct 25 Dividends Payable
110,000
Cash
110,000
Oct 31 Retained Earnings
140,000
Stock Dividends Distributable
140,000
Nov 5
Stock Dividends Distributable
140,000
Common Shares
140,000
