Reference no: EM132763485

Question - The following account balances were selected from the records of Blake Corporation at December 31, year 2, after all adjusting entries were completed:

Common shares (no par value; authorized 110,000 shares, issued 35,000 shares) $700,000

Contributed surplus $168,000

Dividends declared in year 2 $20,000

Retained earnings, January 1, year 2 $77,000

Correction of prior-period accounting error (a debit, net of income tax) $8,500

Income summary for 2020 (credit balance) $29,500

Required -

1. Identify the amounts that would be reported in the retained earnings column of the statement of changes in equity for year 2.

2. Prepare the shareholders' equity section of the statement of financial position at December 31, year 2.

3. Compute and evaluate the dividend yield ratio.