Sage Hill Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $
cumulative preferred shares. On December there were common and preferred shares issued. The common
shares had been issued at an average per share amount of $; the preferred shares at $ The balance in the Retained Earnings
account on January was $ During the company had profit of $ and declared a total of $ of
dividends, of which $ was paid during the year
a
Your Answer
Correct Answer Used
Prepare the shareholders' equity section of the balance sheet on December
SAGE HILL LIMITED
Balance Sheet Partial
December
Shareholders' Equity
Share Capital
Preferred Shares
$
Common Shares
Total Share Capital
Retained Earnings
Total Shareholders' Equity
b
Calculate return on equity for Assume there were no changes in the Common Shares and Preferred Shares accounts during
the year. Round answer to decimal places, eg
Return on equity
