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.