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4: Statement of Changes in Equity with Adjusting Entries Page 16 of 20 Applebaum Services Ltd, showed the following alphabetical list of account balances at Dec 31, 2016 (all accounts have normal balances): (Total: 12 marks) $14,500 6,500 6,200 8,200 400 Accounts payable Accounts receivable Accumulated depreciation, equipment Accumulated depreciation, warehouse Allowance for doubtful accounts Cash Dividends declared, June 30 Common shares Depreciation expense Dividend payable Equipment Income tax expense Land Notes payable, due in 2017 Operating expenses Preferred shares Retained earnings Revenue Unearned revenue Warehouse 45,000 6,200 24,300 2,600 6,200 45,500 15,400 43,800 30,800 55,100 14,600 28,600 113,000 4,100 30,800 Additional Information: 1. The company year-end is Dec 31. 2. The company equity account balances listed above are made up of 1,200, $1.00, cumulative preferred shares and 50,000 common shares. Both the preferred shares and the common shares were issued in 2010 and have an unlimited number of shares authorized The account balances for the equity accounts listed above have had no transactions posted to them this fiscal year. 4. The following transactions should have been recorded during the year ended December 31, 2016, but were missed: The dividends declared of $6,200 from June 30 were paid in cash. On May 31, the company sold 500 common shares for cash at $5.50 per share. 0416 acet 253_ifurevl3.docx Page 17 of 20 wired: Prepare a statement of changes in equity for the year ended December 31, 2016 after correcting for the missed transactions. (9 marks) *** Journal entries are NOT required (optional use of T-accounts might be helpful Prepare the closing entries. (Please assume that the correcting entries have already been done.) 3 marks)

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