December 31, 2019 Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2019 Contributed capital: Preferred shares, $1.6 cumulative, unlimited shares authorized; 15,000 shares issued and outstanding Connon shares, unlimited shares authorized; 70,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 387,000 730,000 $1,117,000 373,000 $1,490,000 In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts: 2020 Jan. 1 Sold 25,000 connon shares at $10.14 per share. 5 The directors declared a total cash dividend of $226,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2018 and 2019. All of the preferred shares had been issued during 2018 Feb. 28 Paid the dividends declared on January 5. July 1 Sold preferred shares for a total of $156,300. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $576,300 credit balance in the Income Summary account. 2021 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $0.9 per common share cash dividend payable on October 28 to the October 5 shareholders of record. Oct. 28 Paid the dividends declared on September 5. 31 Closed the Cash Dividends account along with the $542,700 credit balance in the Income Summary account. Required: 1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account to record declared dividends. Det record declared dividends. View transaction list Journal entry worksheet Record the issuance of 25,000 common shares Note: Enter debits before credits General Journal Debit Date Jan 01, 2020 Credit Record entry Clear entry View general journal 2. Prepare a statement of changes in equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated a minus sign.) TAC TEX CONTROLS INC. Statement of Changes in Equity For Year Ended December 31, 2021 Preferred Common Shares Shares Retained Earnings Total Equity Balance, January 1 Balance, December 31 $ 0$ 0 $ 0 $ 0 3. Prepare the equity section of the company's balance sheet as of December 31, 2021. TAC TEX CONTROLS INC. Equity Section of the Balance Sheet December 31, 2021 Contributed Capital Total contributed capital $ 0 Total equity $ 0