On January 1, 2015, Schipper Ltd., a private company, had the following shareholders' equity accounts:

Preferred shares, $2 noncumulative, unlimited number authorized, none issued

Common shares, unlimited number authorized, 100,000 issued ................$150,000

Retained earnings .......................................................................580,000

The following selected transactions occurred during 2015:

Jan. 2 Issued 10,000 preferred shares for $50 per share.

Mar. 10 Declared the quarterly cash dividend to preferred shareholders of record on March 22, payable April 1.

June 10 Declared the quarterly cash dividend to preferred shareholders of record on June 22, payable July 1.

Aug. 12 Issued 10,000 common shares for $7.30 per share.

Sept. 1 Declared the quarterly cash dividend to preferred shareholders of record on September 22, payable October 1.

Oct. 15 Issued 2,000 common shares in exchange for equipment. The common shares had not traded recently but were valued at $7.60 per share on the last date they had traded. The value of the equipment was $15,000 on October 15.

Dec. 1 The fourth quarter cash dividend to preferred shareholders was not declared or paid.

31 A loss of $50,000 was reported for the year.

Instructions

(a) Record the above transactions for 2015, including any required entries to close dividends and loss to Retained Earnings.

(b) Open T accounts and post to the shareholders' equity accounts.

(c) Prepare a statement of retained earnings for the year.

(d) Prepare the shareholders' equity section of the statement of financial position at December 31.

(e) Schipper is a private company following ASPE. If it followed IFRS instead, how might your answers in parts (a) through (d) change?