Utopia Is A Destination Inc. had the following shareholders’ equity account balances on December 31, 2021:

During 2022, the following transactions occurred:

i. March 1: Utopia resold 500 of the treasury shares at $40 per share.
ii. May 15: Utopia issued (sold) 5,000 common shares for $25 each.
iii. December 15: The board of directors declared cash dividends of $4 per share, payable on January 15, 2023.
iv. December 31: Net income for the year ended December 31, 2022, was $200,000.

Utopia uses the single-transaction method for treasury shares.

Required:
a. Assume that Utopia follows the guidance in ASPE pertaining to accounting for equity transactions. Record the journal entries for the transactions in 2022 and make all the necessary year-end entries relating to shareholders’ equity accounts.
b. Prepare the presentation of the shareholders’ equity section of Utopia’s balance sheet as at December 31, 2022.

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Common stock, no par, 60,000 shares authorized, 40,000 issued Contributed surplus on repurchases and resales Treasury stock, 3,000 shares Retained earnings Total shareholders' equity $ 800,000 20,000 (90,000) 400,000 $1,130,000