Stetson Auto Inc. was incorporated on January 1, 2016 and commenced operations at that date. A $2,000 common share dividend was declared and paid on October 31, 2016. The following information was taken from the shareholders’ equity section of the company’s balance sheet at December 31, 2016:
|
Common shares |
||
|
Issued and outstanding – 10,000 shares |
$10,000 |
|
|
Restriction – plant addition |
150,000 |
|
|
Revenue (total for 2016) |
2,575,000 |
|
|
Expenses (total for 2016) |
2,000,000 |
|
|
Cash dividends declared |
23,000 |
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Required: Prepare the shareholders’ equity section of Stetson Auto’s balance sheet at December 31, 2016 and the statement of changes in shareholders’ equity for the year then ended.
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