Nygen corporation, a private company reporting under ASPE, is authorized ti issue an unllimited number of common shares and 500,000, $5 cumulative preferred shares. It began operations on January 1, 2022 and the following transactions occurred in 2022:

Jan 1: issued 6,000 common shares for $60,000 cash

Jan2 : issued 1,000 preferred shares for $62.50 cash per share

Dec 10: Declared a total of $17,000 in dividends, payable on January 3, to shareholders of record on December 23.

The company's fiscal year ended on December 31, 2022 and recorded a profit of $46,580.

Instructions:

a. Record the share issue and divided transactions:

Jan 1 Dr $..

Cr . $.

To record issuance of common shares

Jan 2 Dr $ .

Cr $ .

To record issuance of preferred shares

Dec . Dr Cash dividend- Preferred shares $

Dr Cash dividend- common shares $ .

Cr . $ 17000

To record declaration of dividends

b. Prepare statement of Retained Earnings:

Nygren Corporation

Statement of Retained Earnings

Year ended December 31, 2022

Retained Earnings Jan 1 $ .

Add: Profit for the year $ .

------------------------

$..

Less: Preferred share dividend ($ .)

Less : Common share dividend ( $)

Retained earnings Dec 31 $ .

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To close the income Summary account, the Journal entry has a debit to income Summary and a credit to

c. The Company's total shareholder's equity as at December 31, 2022 equals to $