The balance sheet for Umi Sustainable Seafood Inc. reported the following components of equity on December 31, 2022:

Required1. Prepare journal entries to record the transactions and closings for 2023.2. Prepare a statement of changes in equity for the year ended December 31, 2023.3. Prepare the equity section of the corporation’s balance sheet as of December 31, 2023.

Analysis Component:Explain the relationship between assets and retained earnings; use your answer in Part 3 above as part of the explanation.

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Common shares, unlimited shares authorized, 20,800 shares issued and outstanding.... Retained earnings. Total equity.. In 2023, Umi had the following transactions affecting shareholders and the equity accounts: Jan. 5 The directors declared a $4.00 per share cash dividend payable on Feb. 28 to the Feb. 5 shareholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,150 common shares at $39.20 per share. Aug. 22 Sold 1,650 common shares at $28.00 per share. $376,000 224,000 $600,000 Sept. 5 The directors declared a $4.00 per share cash dividend payable on October 28 to the October 5 shareholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $348,000 credit balance in the Income Summary account. 31 Closed the Cash Dividends account.