Reference no: EM132678881

Sals Ltd. reported the following balances at January 1, 2019:
Common shares................................................................................ $370,000

Preferred shares................................................................................ 74,000

Retained earnings............................................................................. 70,000

Accumulated other comprehensive income..................................... 71,000

Sals' corporate tax rate............................................................ 26.5%

During the year, Sals performed the following:

1. Cumulative effect of change from straight-line to accelerated depreciation resulted in a reduction to retained earnings of $38,000, before tax;

2. Issued common shares for a proceed of $40,000;

3. Retired 35% of preferred shares outstanding;

4. Earned net income of $330,000 and;

5. Generated other comprehensive income of $66,000;

6. Declared total dividend of $130,000 Instructions

Problem 1: Make a statement of shareholders' equity in proper format for Sals Ltd. for the year ended December 31, 2019.