Required: 1. Prepare journal entries to record the transactions and closings for 2010 and 2011. 2. Prepare the statement of changes in equity for the year ended December 31, 2011. 3. Prepare the equity section of the company's balance sheet as of December 31, 2011.

1 . 4. McNaab Corp. began operations in 2009,. ts balance sheet rmported the 1, 2009 McNaab Corp. Equity Section of the Balance Sheot Contributed capital: December 31, 2009 Preferred shares, $1.50 non-cumulative, unlimited shares authorized 25,000 shares issued and outst anding Common shares, unlimited shares authorizod s 650,000 462,500 $2,112,500 52,680,000 162,500 shares issued and outstanding Total contributed capital Retained eamings. Total equity 567 The corporation completed these transactions during 2010 and 2011 2010 1 Sold 50,000 common shares at $9.50 per share 5 The directors declared the first cash dividend totalling $159,375 payable on Jan. Feb. 28 to the Feb. 5 shaoholders of record. Feb. 28 Pald the dividends declared on January 5 1 Issued preferred shares for a total of 405,000. The average isue price was $27.00 per share. the dividend accounts along with the Income Summary account Dec. which reflected net Income earned during 2010 of $640,000. 2011 The directors declared a $1.50 cash dividend per prefered share and a Sept. 5 $0.75 per common share cash dividend poyable on Oct 28 to the Oxt. s shareholders of record. 28 Paid the dividends declared on September 5 31 Closed the dividend accounts along with the $200,000 dabit bolance in the Income Summary account. Dec. 2. Prepare the statement of chod 3. uiredal entries to recond the transactions and closings for 2010 and 2011 Re prepare loursatment of changes in equity for the year ended December 31, 2011 t 1. Propare the equity section of the company's balance sheet as of Oscember 31, 2011. Part 1 Account Title