Crombie Landscaping Inc. performs yard cleanup for homeowners in Oakville, Ontario. The shareholders' equity account balances at February 1, 2015, are shown below:
$2.20 cumulative preferred shares (1,000,000 authorized,
150,000 issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . $4,650,000
Common shares (750,000 authorized,
280,600 issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . 1,683,600
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,450,000
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . 54,670
The following are selected transactions during the year:
Feb. 21. Paid the semiannual dividends of $200,000 declared and recorded prop- erly in December 2014. No new preferred or common shares were issued during December, January, or February. Crombie Landscaping uses a cash dividends account.
Apr. 5. Issued 40,000 preferred shares for $33 per share.
Jun. 15. Declared semiannual dividends of $200,000 to be paid August 20, to share- holders of record on July 28.
Aug. 20. Paid the cash dividends.
Nov. 4. Issued 25,000 common shares for $16 per share.
Dec. 5. Declared semiannual dividends of $300,000 to be paid February 16, 2016, to shareholders of record on January 24.
Jan. 15. 3,000 common shares were traded in the marketplace at $18 per share.
Jan. 31. Prepared the year-end closing entries with net income of $735,950 and a loss in other comprehensive income of $2,745. Crombie Landscaping uses the income summary account when preparing the closing entries.
Instructions
1. Journalize the transactions.
2. Prepare a statement of changes in equity.
3. Prepare the shareholders' equity section of the balance sheet as at January 31, 2016.