Miss M's Dance Studios Ltd. is a public company, and accordingly uses IFRS for financial reporting. The corporate charter authorizes the issue of up to 1 million common shares and 50,000 preferred shares with a $2 dividend. At the beginning of the December 31, 2014 year, the opening account balances indicated that 25,000 common shares had been issued for $4 per share, and no preferred shares had been issued. Opening retained earnings were $365,000. The transactions during the year were as follows:

Jan. 15 Issued 10,000 common shares at $6 per share.

Feb. 12 Issued 2,000 preferred shares at $60 per share.

June 30 Declared and paid dividend on common shares of $1.50 per share.

Sept. 2 Issued 5,000 common shares in exchange for land valued at $25,000.

Oct. 31 Declared and paid dividend on preferred shares of $2 per share.

Nov. 15 Purchased and retired 500 preferred shares at $62 per share.

Dec. 31 Reported net income of $532,000.

Instructions

(a) Prepare journal entries to record the transactions above.

(b) Prepare the statement of changes in shareholders' equity.