From the Following Alphabetical List of Selected Accounts Taken from the General

question 159

Essay

From the following alphabetical list of selected accounts taken from the general ledger of Dorlin Corporation as of December 31,2014,select the accounts that are part of shareholders' equity.Then prepare the shareholders' equity section of the balance sheet on December 31,2014.
$$\begin{array} { l l } \text { Accounts receivable } & 50,000 \\\text { Cash dividends payable } & 20,000 \\\text { Common shares, 20,000 shares outstanding } & 550,000 \\\text { Inventory } & 75,000 \\\text { Note payable } & 25,000 \\\text { Notes receivable } & 20,000\end{array}$$ Preferred shares,$10 cumulative,
1,000 shares outstanding $\quad$$\quad$ 250,000
Retained earnings $\quad$$\quad$$\quad$$\quad$ 250,000
Unearned revenue $\quad$$\quad$$\quad$$\quad$ 15,000

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Definitions:

Agent

An Agent is an individual or entity authorized to act on behalf of another, known as the principal, in dealings with third parties.

Void

Legal term indicating that an agreement or contract has no legal force and is unenforceable as if it were never made.

Identity

The condition or character as to who a person or what a thing is; the qualities, beliefs, etc., that distinguish or identify a person or thing.

Ratification

The act of formally confirming or approving an agreement, treaty, or contract, making it officially valid.