Components of Shareholders' Equity: The following accounts are taken from the general ledger of GRL Trading Limited on 31 December 20X1:

\begin{array}{lr}
\text { Preferred shares, no-par value, } \$ 2 \text {, unlimited number authorized, } \\
\quad \text { cumulative and fully participating; } 27,000 \text { shares issued and } & \\
\quad \text { outstanding } & \$ 168,000 \\
\text { Bonds payable, 7\% } & 500,000 \\
\text { Stock subscriptions receivable, common shares } & 3,000 \\
\text { Common shares, no-par, unlimited number authorized; } & \\
\quad 45,000 \text { shares issued and } 44,900 \text { outstanding } & 1,350,000 \\
\text { Discount on bonds payable } & 6,000 \\
\text { Retained earnings } & 653,000 \\
\text { Treasury shares, } 100 \text { common shares } & 8,600 \\
\text { Unrealized exchange gain on translation of foreign subsidiary's } & \\
\quad \text { financial statements } & 150,500 \\
\text { Fractional common share rights } & 9,200 \\
\text { Contributed capital on common share retirement } & 18,900 \\
\text { Common shares subscribed, 100 shares } & 9,000
\end{array}

Required:

1. Prepare the shareholders' equity section of the SFP at year-end.

2. Explain the meaning of each account in equity.