Ruby Red Rental Corporation had the following balances in its shareholders’ equity accounts at January 1, 2021:

Accumulated other comprehensive income (loss) ................... $ (25,000)
Contributed surplus—reacquisition of common shares ........... 540,000
Retained earnings ........................................................................ 1,500,000
Common shares (32,000 shares) .................................................. 800,000

Ruby Red had the following transactions and events during 2021:

Feb. 2 Repurchased 1,000 shares for $44,500.

Apr. 17 Declared and paid cash dividends of $70,000.

Oct. 29 Issued 2,000 shares for $104,000 cash.

Dec. 31 Reported comprehensive income of $425,000, which included other comprehensive income of $40,000.

Instructions

a. Prepare journal entries to record the transactions that took place during 2021.

b. Prepare a statement of changes in shareholders’ equity at December 31, 2021.

c. Calculate the number of shares issued as at December 31, 2021.