The balance sheet for Tactex Controls Inc., provincially incorporated in 2015, reported the following components of equity on December 31, 2016.

Tactex Controls Inc.
Equity Section of the Balance Sheet
December 31, 2016
Contributed capital:
Preferred shares, $1.5 cumulative, unlimited shares authorized; 14,000 shares issued and outstanding	$	386,000
Common shares, unlimited shares authorized; 69,000 shares issued and outstanding.		729,000
Total contributed capital	$	1,115,000
Retained earnings		372,000
Total equity	$	1,487,000

In 2017 and 2018, the company had the following transactions affecting shareholders and the equity accounts:

2017
Jan. 1	Sold 24,000 common shares at $10.04 per share.
5	The directors declared a total cash dividend of $225,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2015 and 2016. All of the preferred shares had been issued during 2015.
Feb. 28	Paid the dividends declared on January 5.
July 1	Sold preferred shares for a total of $156,200. The average issue price was $25 per share.
Dec. 31	Closed the dividend accounts along with the $576,200 credit balance in the Income Summary account.
2018
Sept. 5	The directors declared the required cash dividend on the preferred shares and a $0.8 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 $542,600 credit balance in the Income Summary account.

Required: 1. Prepare journal entries to record the transactions and closings for 2017 and 2018. The company uses a cash dividends account to record declared dividends. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1.Record the issuance of 24,000 common shares 2.Record the dividend declared on preferred shares and common shares. 3.Record cash dividend paid. 4.Record the issuance of preferred shares. 5.Record to close the dividend account. 6.Record to close the net income to retained earnings. 7.Record the dividend declared on preferred shares and common shares. 8.Record cash dividend paid. 9.Record to close the dividend account. 10.Record to close the income summary account.

2. Prepare a statement of changes in equity for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

TACTEX CONTROLS INC.
Statement of Changes in Equity
For Year Ended December 31, 2018
	Preferred Shares	Common Shares	Retained Earnings	Total Equity
Balance, January 1
Balance, December 31

3. Prepare the equity section of the companys balance sheet as of December 31, 2018.

TACTEX CONTROLS INC.
Equity Section of the Balance Sheet
December 31, 2018
Contributed Capital:
Total contributed capital
Total equity