Sarasota Limited has two classes of shares outstanding: preferred ($5 dividend) and common. At December 31, 2019, the following accounts and balances were included in shareholders’ equity:Preferred shares, 270,000 shares issued (authorized, 1,000,000 shares) $ 2,900,000Common shares, 900,000 shares (authorized, unlimited) 24,500,000Contributed surplus—preferred 150,000Contributed surplus—common 1,500,000Retained earnings 5,000,000Accumulated other comprehensive income 200,000The contributed surplus accounts arose from net excess of proceeds over cost on previous cancellations of shares of each respective class. The following transactions affected shareholders’ equity during 2020:Jan. 1 Issued 24,000 preferred shares at $24 per share.Feb. 1 Issued 48,000 common shares at $19 per share.June 1 Declared a 2-for-1 stock split (common shares).July 1 Purchased and retired 27,000 common shares at $14 per share.Dec. 31 Net income is $2,050,000; comprehensive income is $2,000,000.Dec. 31 The preferred dividend is declared, and a common dividend of $0.45 per share is declared.Assume that Sarasota follows IFRS. 1. Prepare the statement of changes in shareholders’ equity for the company at December 31, 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round intermediate calculations to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)SARASOTA LIMITEDStatement of Changes in Shareholders' Equity For the Year Ended December 31, 2020December 31, 2020For the Month Ended December 31, 2020 Preferred SharesCommon SharesContrib.Surplus – PreferredContrib.Surplus – CommonRetainedEarningsAcc. OtherComprehensiveIncomeTotal Number ofSharesShare CapitalNumber ofSharesShare CapitalBalance January 1, 2020

Shareholders' equity can be defined as the worth of the business which shows the proportion of funds…

Answered: Prepare the statement of changes in…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

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Sarasota Limited has two classes of shares outstanding: preferred ($5 dividend) and common. At December 31, 2019, the following accounts and balances were included in shareholders’ equity:

Preferred shares, 270,000 shares issued (authorized, 1,000,000 shares)		$ 2,900,000
Common shares, 900,000 shares (authorized, unlimited)		24,500,000
Contributed surplus—preferred		150,000
Contributed surplus—common		1,500,000
Retained earnings		5,000,000
Accumulated other comprehensive income		200,000

The contributed surplus accounts arose from net excess of proceeds over cost on previous cancellations of shares of each respective class. The following transactions affected shareholders’ equity during 2020:

Jan. 1		Issued 24,000 preferred shares at $24 per share.
Feb. 1		Issued 48,000 common shares at $19 per share.
June 1		Declared a 2-for-1 stock split (common shares).
July 1		Purchased and retired 27,000 common shares at $14 per share.
Dec. 31		Net income is $2,050,000; comprehensive income is $2,000,000.
Dec. 31		The preferred dividend is declared, and a common dividend of $0.45 per share is declared.

Assume that Sarasota follows IFRS.

1. Prepare the statement of changes in shareholders’ equity for the company at December 31, 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round intermediate calculations to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

SARASOTA LIMITED Statement of Changes in Shareholders' Equity For the Year Ended December 31, 2020December 31, 2020For the Month Ended December 31, 2020
	Preferred Shares	Common Shares	Contrib. Surplus – Preferred	Contrib. Surplus – Common	Retained Earnings	Acc. Other Comprehensive Income	Total
	Number of Shares	Share Capital	Number of Shares	Share Capital
Balance January 1, 2020

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