The following accounts appear in the ledger of Niagra Inc. after the books are closed at December 31, 2008.
Common shares, no par value, 500,000 shares authorized, 400,000 shares issued $400,000
Common stock dividends distributable 80,000 $8 Preferred shares, no par value, 10,000 shares authorized, 3,000 shares issued 300,000
Retained earnings 950,000
Instructions:
Prepare the shareholders' equity section of the balance sheet at December 31, 2008, assuming that retained earnings is restricted for plant expansion in the amount of $200,000.