The Able Corporation had equity on December 31, 2020, as follows:

Common shares, unlimited shares authorized, $250,000

50,000 shares issued

Retained earnings 200,000

Able Corporation is authorized to issue 100,000 shares of $3 cumulative preferred shares.

The following transactions occurred during 2021:

Jan. 15 Issued 5,000 common shares in exchange for equipment valued at $ 35,000.

Feb. 15 The board of directors declared a 5% share dividend to shareholders of record on March 1, to be distributed on March 20. The shares were selling for $6 a share.

Mar. 20 Issued the share dividend.

Apr. 15 Issued 12,000 preferred shares for cash at $22 per share.

May 1 Declared total cash dividends of $62,000 to shareholders of record on May 20, payable June 1.

June 1 Paid the cash dividend.

Aug. 20 The board decided to split the common shares 4 for 1 effective September 1.

Sept. 1 Share split (4 for 1) executed.

Dec. 31 Earned a net income of $300,000 for the year. Closed the income summary account.

REQUIRED:

Journalize the above journal entries, Prepare a statement of changes in equity for 2021 and Prepare the balance sheet presentation of the equity as at December 31, 2021.