Diamond Inc. had the following equity accounts on January 1, 20x3: Common shares

Question

Diamond Inc. had the following equity accounts on January 1, 20x3:

Common shares (232794 issued)

$813955

Retained Earnings

912738

During the year 20x3, Diamond Inc. had the following equity transactions:

Feb. 2

Issued 9264 common shares for $34948.

June 30

Effected a 2-for-1 stock split. Shares were trading at $1.75.

Aug. 15

Declared a $2.46 cash dividend per share to shareholders of record August 15, payable January 15, 20x4.

Dec. 31

Annual net income of $509245.

What is Diamond Inc.’s ending shareholders’ equity balance?

Common shares (232794 issued)

$813955

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Beginning Common Equity                813,955.00 Add shares issued                   34,948.00 Ending Common stock                848,903.00 Beginning Retained Earnings                912,738.00 Less dividend = (232794+9264)*2*2.46          (1,190,925.36) Add Net Income                509,245.00 ending retained earnings                231,057.64 Diamond Inc.’s ending shareholders’ equity balance = 848903 + 231057.64             1,079,960.64

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