Canarie Corporation, a publicly traded company, is authorized to issue 212,000 $4 noncumulative preferred shares and an unlimited number of common shares. On January 1, 2021, the general ledger contained the following shareholders' equity accounts: Preferred shares (7,600 shares issued) $418,000 Common shares (70,000 shares issued) 980,000 Contributed surplus 22,600 Retained earnings 726,000 Accumulated other comprehensive income 9,000 The following equity transactions occurred in 2021: Feb. 6 Issued 9,200 preferred shares for $561,200. Apr. 6 Issued 20,000 common shares for $550,000. 27 Repurchased and retired 2,900 common shares at $16 per share. The balance in the Contributed Surplus account arose from the repurchase of common shares in prior years. May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1. Aug. 22 Issued 8,900 common shares in exchange for a building. At the time of the exchange, the building was valued at $173,400 and the common shares at $159,000. Dec. 14 The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders. 31 Net income for the year was $595,000.Record the above transactions, including any entries required to close dividends and net income. (List all debit entries before credit entries. 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 O for the amounts. Round average cost per share to 2 decimal palces, e.g. 2.25 and final answers to O decimal places. Date Account Titles and Explanation Debit Credit . 6 Cash 561200 Preferred Shares 561200 Cash 550000 Common Shares 550000 27 V Common Shares 49300 Cash 46400 Contributed Surplus 2900 1 29 Dividends Declared 33600 Dividends Payable 33600 e 12 No Entry 0 No Entry Dividends Payable 33600 Cash 33600 . 22 V Buildings 173400 Common Shares 173400 . 14 No Entry No EntryClosing entries: Date Account Titles and Explanation Debit Credit Dec. 31 Income Summary 595000 Retained Earnings 595000 (To close net income/(loss).) Dec. 31 Retained Earnings 33600 Dividends Declared 33600 (To close dividends.)Open T accounts and post to the shareholders' equity accounts. (Record entries in the order presented in the problem.) Preferred Shares Jan. 1 Bal. 418000 Feb. 6 561200 Dec. 31 Bal. 979200 Dividends Declared May 29 33600 Dec. 31 CE V 33600 Dec. 31 Bal. V Common Shares Apr. 27 49300 Jan. 1 Bal. 980000 Apr. 6 550000 Aug. 22 173400 Dec. 31 Bal. V 1654100 Retained Earnings Dec. 31 CE V 33600 Jan. 1 Bal. 726000 Dec. 31 CE V 595000 Dec. 31 Bal. 1287400 Accumulated Other Comprehensive Income Jan. 1 Bal. 9000 Dec. 31 Bal. 9000Prepare the statement of changes in equity for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) CANARIE CORPORATI Statement of Changes in E For the Year Ended December 31, Share Capital Contributed Preferred Shares Common Shares Surplus Balance, Jan. 1 $ $ $ Issued preferred shares Issued common shares Repurchased common shares Dividends declared Net income Balance, Dec. 31 $ $ $Prep are the statement 01' ch 3 nges in equity for the year. (Enter negative amounts using either a negative Sign preceding the number e3. 45 or parentheses e4 {45).} CANARIE CORPORATION atement of Changes in Equity {Year Ended December 31, 2021 Contributed Accumulated Other Surplus Retained Earnings Comprehensive Income Total $1 $ $: $ l : H
