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On December 31 2016 Andes Company SA had 1500000 €10 par ordinary shares issued and outstanding The equity accounts

On December 31, 2016, Andes Company SA had 1,500,000 €10 par ordinary shares issued and outstanding. The equity accounts at December 31, 2016, had the following balances. Share Capital-Ordinary..........................€15,000,000 Share Premium-Ordinary...........................1,500,000 Retained Earnings.......................................900,000 Transactions during 2017 and other information related to equity accounts were as follows. 1. On January 10, 2017, Andes issued at €104 per share 100,000 €100 par value, 7% cumulative preference shares. 2. On February 8, 2017, Andes reacquired 16,000 ordinary shares for €14 per share. 3. On June 8, 2017, Andes declared a cash dividend of €1 per share on the ordinary shares outstanding, payable on July 10, 2017, to shareholders of record on July 1, 2017. 4. On December 15, 2017, Andes declared the yearly cash dividend on preference shares, payable January 10, 2018, to shareholders of record on December 15, 2017. 5. Net income for the year is €3,600,000. 6. It was discovered that depreciation expense had been understated in 2016 by €58,000. Instructions (a) Prepare a retained earnings statement for the year ended December 31, 2017. (b) Prepare the equity section of Andes s statement of financial position at December 31, 2017.

Apr 22 2020 View more View Less

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