Orillia Outfitters Ltd. reported the following shareholders’ equity information on January 1, 2020:

Contributed capital
Preferred shares, $0.75, cumulative (1 year in arrears), liquidation
price of $5.00, 50,000 shares authorized, 15,000 shares
issued and outstanding ............................................................. $150,000
Common shares, unlimited number of shares authorized,
25,000 shares issued and outstanding ...................................... 125,000
Total contributed capital .............................................................. 275,000
Retained earnings ......................................................................... 220,000
Total shareholders’ equity .......................................................... $495,000

The following transactions took place during 2020:

Jan. 28 Declared a $25,000 cash dividend, payable on March 1 to the shareholders of record on February 15. Indicate the amount payable to each class of shareholder.

Feb. 25 Issued 10,000 common shares for $7.00 per share.

Mar. 1 Paid the cash dividend declared on January 28.

Apr. 4 Declared a 10 percent stock dividend on the common shares, distributable on May 15 to the shareholders of record on April 15. The market value of the shares was $8.00 per share.

May 15 Distributed the stock dividend declared on April 4.

Jul. 6 Repurchased 10,000 of the company’s own common shares at $8.50 per share.

Sep. 3 Issued 5,000 common shares for $8.50 per share.

Nov. 2 Split the common shares 2 for 1.

Dec. 31 Reported net income of $100,000. Closed the Income Summary account.

Required

1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the statement of shareholders’ equity for the year ended December 31, 2020.