Connolly Corporation Had the Following Events During One Fiscal Year

Essay

Connolly Corporation had the following events during one fiscal year:
1. A stock dividend is declared on common shares.
2. The stock dividend is distributed.
3. Other comprehensive income for the year totals $350,000.
4. Cash dividends are declared.
5. The cash dividends are paid.
6. Profit for the year is $1,500,000.
7. Prior year's profit had to be corrected to record additional revenue that had been earned, but which had not yet been paid for by the customer. The additional revenue increases the amount of taxes payable on the prior year's income.
8. Repurchased common shares for an amount less than their average cost.
9. One third of the preferred shares are converted to common shares on a 1:10 ratio.
Instructions
Using the table provided, for each of the following financial statement categories, indicate the effect of the transaction as follows: