Reference no: EM132714346
Question - On December 31, 2019, the shareholders' equity section of Chiefs Inc. was as follows:
Common shares, no par value: authorized 30,000 shares; issued and outstanding 10,000 shares: $ 206,000
Retained earnings: 261,000
Total shareholders' equity $ 467,000
On March 31, 2020, when the market value of Chiefs' shares was $33 per share, the corporation declared a 20% stock dividend. For the three months ended March 31, 2020, Chiefs reported a net loss of $ 68,000.
Instruction - By providing details and round all figures to the nearest dollar:
a) Calculate the balance of Chiefs' retained earnings at March 31, 2020.
b) Calculate the carrying value of Chiefs' Common shares and revised number of shares outstanding on the same date.