(Solution) - Northwest Territories Inc has the following shareholders equity information Northwest s -(2025 Original AI-Free Solution)

Paper Details

Northwest Territories Inc. has the following shareholders' equity information: Northwest's incorporation authorizes the company to issue 10,000 $5 cumulative preferred shares and 400,000 common shares. The company issued 1,000 preferred shares at $100 per share. It issued 100,000 common shares for a total of $370,000. The company's Retained Earnings balance at the beginning of 2014 was $40,000, and net income for the year was $90,000. During 2014, Northwest declared the specified dividend on preferred shares and a $0.50 per-share dividend on common shares. Preferred dividends for 2013 were in arrears.
Requirement
Prepare the shareholders' equity section of Northwest Territories Inc.'s balance sheet at December 31, 2014. Show the computation of all amounts. Journal entries are not required.