QUSTREAM INC.

Statement of Changes in Equity

For Year Ended December 31, 2015

Balance, January 1
Issuance of shares
Net income (loss)
Dividends
Balance, December 31

Common
Shares
$ 480,000
139,200

$ 619,200

Retained
Earnings
$ 648,000
321,600
(270,000)
$ 699,600

Total Equity
$ 1,016,000
139,200
321,600
(270,000)
$ 1,318,800

Part 3
QUSTREAM INC.
Equity Section of the Balance Sheet
December 31, 2015
Contributed capital:
Common shares, unlimited shares
authorized, 120 0001 shares issued
and outstanding .................................................................
Retained earnings ....................................................................
Total equity ...............................................................................

$619,200
669,600
$1,318,800

Calculations:
1. Common Shares:
Shares
Jan. 1 Balance brought forward.................................................
100,000
Nov. 11 Issued 12,000 shares.......................................................
12,000
Nov. 25 Issued 8,000.....................................................................
8,000
Totals................................................................................
120,000

Dollars
$480,000
93,600
45,600
$619,200

Date

Account

Dr

2015, March
2

Retained Earnings

$90,00
0

Cr

Common Dividends
$90,000
Payable
Declared dividends; 100 000 shares*0.9/share=$90, 000
March 31

Common Dividends
Payable
Cash
Paid declared dividends

90,000
90,000

Nov. 11

Common Shares
93,600
Cash
93,600
Issued 12,000 Common Shares at $7,80 per share
(12,000*$7.8)=93,600
Nov. 25

Cash

45,
600

Common Shares
45,600
Issued 8,000 Common Shares at $5.7 per share
(8,000*5.7)=45,600
Dec. 1
Retained Earnings
180,00
0
Common Dividends
180,000
Payable
Declared dividends at 1.5 per share
(100,000+12,000+8,000)*1.5=180,000
Dec. 31

Income Summary

321,60
0

Retained Earnings
321,600
Closed Income Summary to Retained Earnings
Dec. 31 No entry because there is no Cash Dividend
Account