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1 Windsor Inc., a private company, is authorized to issue an unlimited number of common shares and 300,000 noncumulative $4 preferred shares. It began operations

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1 Windsor Inc., a private company, is authorized to issue an unlimited number of common shares and 300,000 noncumulative $4 preferred shares. It began operations on January 1, 2021, and the following are selected transactions during 2021. Jan. Issued 400,000 common shares for $200,000 cash. Issued 40,000 preferred shares for $50 cash per share. Declared a total of $213,100 in dividends, payable on January 5, to shareholders of record on December 13. 31 Determined that it had total revenues of $921,000 and operating expenses of $630,000. 2 Dec. 1 Windsor elected to report under ASPE. It has a 15% income tax rate and paid income tax instalments during the year of $37,650. Record the share issue and dividend transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Date (To record issuance of shares.) Record the share issue and dividend transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit (To record issuance of shares.) (To record issuance of shares.) Dec. 1 (To record declaration of dividend.) Prepare a partial income statement starting with profit before income tax and record an adjusting entry for income tax. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) WINDSOR INC. Income Statement (Partial) $ Date Account Titles and Explanation Debit Credit Dec. 31 (To record income tax expense.) Prepare a statement of retained earnings. (List items that increase retained earnings first.) WINDSOR INC. Statement of Retained Earnings C $ Question Part Score P /3 Prepare the shareholders' equity section of the balance sheet. WINDSOR INC. Balance Sheet (Partial) Question Part Score --/3

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