On January 1, 2009, Schipper Ltd. had the following shareholders' equity accounts:

-Preferred shares, $4-noncumulative, no par value, unlimited number authorized, none issued

-Common shares, no par value, unlimited number authorized 1,000,000 issued $1,500,000

-Retained Earnings 1,800,000

-Accumulated other comprehensive income (loss) (25,000)

The following selected transactions occured during 2009:

Jan.2 Issued 100,000 preferred shares for $50 per share

Mar. 10 Declared the quarterly cash dividend to preferred shareholders of record on March 22, Payable April 1

June 10 Declared the quarterly cash dividend to preferred shareholders of record on June 22, payable July 1

Aug. 12 Issued 100,000 common shares for $1.70 per share

Oct.1 Declared the quarterly cash dividend to preferred shareholders of record on October 22, payable November 1. Also declared a $0.25 cash dividend per share to the common shareholders of record on October 22, payable November 1

Dec. 10 Due to a temporary shortfall of cash, was unable to declare or pay the quarterly cash dividen to preferred shareholders.

31 Net loss for the year was $100,000

Instructions:

(a) Record the above transactions

(b) Open T accounts and post to the shareholders' equity accounts

(c) Prepare a statement of shareholders' equity for the year

(d) Prepare the shareholders' equity section of the balance sheet at December 31

(e) Prepare the financing activities section of the cash flow statement for the year