Tactex Controls Inc.

Equity Section of the Balance Sheet

December $31,2022$

Contributed capital:

Preferred shares, $$2\mathrm{.}3$ cumulative, unlimited shares authorized; $22,000$ shares issued and outstanding $ $394,000$

Common shares, unlimited shares authorized; $77,000$ shares issued and outstanding $737,000$

Total contributed capital $ $1,131,000$

Retained earnings $380,000$

Total equity $ $1,511,000$

In $2023$ and $2024,$ the company had the following transactions affecting shareholders and the equity accounts:

$2023$

Jan. $1$ Sold $32,000$ common shares at $$10\mathrm{.}84$ per share.

$5$ The directors declared a total cash dividend of $$233,000$ payable on Feb. $28$ to the Feb. $5$ shareholders of record. Dividends had not been declared for the years $2021$ and $2022.$ All of the preferred shares had been issued during $2021.$

Feb. $28$ Paid the dividends declared on January $5.$

July $1$ Sold preferred shares for a total of $$157,000.$ The average issue price was $$25$ per share.

Dec. $31$ Closed the dividend accounts along with the $$577,000$ credit balance in the Income Summary account.

$2024$

Sept. $5$ The directors declared the required cash dividend on the preferred shares and a $$1\mathrm{.}6$ 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 $$543,400$ credit balance in the Income Summary account.

Required:

$1.$ Prepare journal entries to record the transactions and closings for $2023$ and $2024.$ The company uses a cash dividends account to record declared dividends.

$2.$ Prepare a statement of changes in equity for the year ended December $31,2024.($Amounts to be deducted should be indicated by a minus sign.$)$

$3.$ Prepare the equity section of the company$$s balance sheet as of December $31,2024.$

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