On January 2, 2024, Rolman Corporation, a private company, began operations. Its articles of incorporation authorize it to issue an unlimited number of common shares and 500,000, $3 noncumulative preferred shares. In its first year, 2024, the company had the following selected transactions:

Jan.	2	Issued 50,000 common shares to Rowena Rolman for $10 cash per share.
Jan.	10	Issued 1,500 common shares to Rowena's brother in exchange for a used vehicle. The vehicle was appraised at $15,000.
June	30	Declared a $0.25 dividend to the common shareholders of record on July 1, payable July 5.
July	5	Paid the common share dividend.
Oct.	1	Issued 1,000 preferred shares to Rowena's grandmother at $60 per share.
Dec.	30	Declared the $0.75 quarterly preferred share dividend, and a $0.25 common share dividend. Both dividends are payable on January 5 to the shareholders of record on January 1.

During 2024, the company had service revenue of $240,000, and operating expenses of $180,000. The company has a 15% income tax rate and did not make any instalments during the year. Rowena has decided the company will use ASPE.

Instructions

(a) Prepare journal entries for the selected transactions.

(b) Prepare an income statement and a journal entry to record income tax expense.

(c) Prepare a statement of retained earnings and the shareholders' equity section of the balance sheet.

(d) Prepare closing entries.