Time Travel Ltd. reported the following accounts and their balances as at April 1, 2015, the beginning of the current fiscal year:
Common shares, unlimited authorized,
40,000 shares issued and outstanding . . . . . . . . . . . . . . . . . $1,150,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 980,000
$2 preferred shares, unlimited authorized,
30,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . 210,000
The company reported the following results for the year:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Dividend declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Common shares issued, 10,000 . . . . . . . . . . . . . . . . . . . . 300,000
Preferred shares issued, 5,000 . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Instructions
1. Journalize the share issuances and year-end closing entries.
2. Prepare a statement of changes in equity for the year ended March 31, 2016.