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December 31, 2019. The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity on Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2019 Contributed capital: Preferred shares, $1.9 cumulative, unlimited shares authorized; 18,000 shares issued and outstanding 390,090 Common shares, unlimited shares authorized; 73,000 shares issued and outstanding 733,000 Total contributed capital $1, 123,000 Retained earnings 376,090 Total equity $ 1, 499, 090 In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts: 2020 Jan. 1 Sold 28, 000 common shares at $10.44 per share. 5 The directors declared a total cash dividend of $229,000 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. 1 Sold preferred shares for a total of $156,600. The average issue price was $20 per share. July 31 Closed the dividend accounts along with the $576,600 credit balance in the Income Summary Dec. account. 2021 5 The directors declared the required cash dividend on the preferred shares and a $1.2 per Sept. Next >In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts: 2020 Jan . Sold 28,900 common shares at $10.44 per share. The directors declared a total cash dividend of $229,900 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 $156,600. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $576, 600 credit balance in the Income Summary account. 2021 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.2 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. Dec . 31 Closed the Cash Dividends account along with the $543,000 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.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. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 10 Record the issuance of 28,000 common shares Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 20202. Prepare a statement of changes in equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) TACTEX CONTROLS ING Statement of Changes in Equity For Year Ended December 31, 2021 Preferred Common Retained Total Equity Shares Shares Earnings Balance, January 1 $ $ Balance, December 31 $ 0 $ 0 0 0
