The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity on December 31, 2019 Taetex Controls The Equity Section of the Balance sheet December 31, 2019 Contributed capitali Preferred shares, $1.8 cumulative, unlimited shares authorized; 17,000 shares issued and outstanding Common shares, unlimited shares authorized 72,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 389,000 732,000 $1,121,000 375,000 $1,496,000 In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts: 2020 Jan. 1 Sold 27,000 common shares at $10.34 per share. 5 The directora declared a total cash dividend of $220,000 payable on Feb. 28 to the Yob.'s shareholders of record. Dividenda had not been declared for the years 2018 and 2019. All of the preferred shares had been tarved during 2018. Teb. 28 Paid the dividends deelred on January 5. July 1 sold preferred shares for total of 1156,500. The average issue price was $20 per share Dec. 31 closed the dividend accounts along with the $576,500 credit balance in the Income Sumary sccount 2021 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.1 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 Dividende secount along with the $542,900 credit balance in the Income Smary account Required: 1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account to record declared dividends. Income summary account. Required: 1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account to record declared dividends. View transaction list Journal entry worksheet 3 1 2 4 5 6 7 8 9 10 Record the issuance of 27,000 common shares Note: Enter debits before credits. General Journal Date Jan 01, 2020 Debit Credit Record entry Clear entry View general journal Income summary account. Help Save Required: 1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account to record declared dividends. View transaction list Journal entry worksheet Record the dividend declared on preferred shares and common shares. Note: Enter debits before credits Date General Journal Debit Credit Jan 05, 2020 Record entry Clear entry View general Journal Income Ty account. Help Save & Ex Required: 1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account to record declared dividends. View transaction list Journal entry worksheet 2 4 5 6 7 8 9 10 > Record cash dividend paid. Note: Enter debits before credits Date Feb 28, 2020 General Journal Debit Credit Record entry Clear entry View general Journal Saved Income summary account. Help Save & Exit Required: 1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account to record declared dividends. View transaction list Journal entry worksheet 3 4 5 6 7 8 9 10 Record the issuance of preferred shares. Note: Enter debits before credits Date Jul 01, 2020 General Journal Debit Credit Record entry Clear entry View general journal Saved Help Save Income summary account. Required: 1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account to record declared dividends. View transaction list Journal entry worksheet Record to close the income summary account Geral Journal Dec 31, 2021 Deb Credit erdry Clear entry View general MacBook A $ % 3 4 5 & 7 1 6 8 9 O W E R T Y U O 5 D E. H J K L 2. Prepare a statement of changes in equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) TACTEX CONTROLS INC Statent of Changes in Equity For Ended December 31, 2021 Preferred Common Shares Retained Earnings Total Equity Balance, January 1 Balance, December 31 $ 0 $ 0 $ 0 $ 0 3. Prepare the equity section of the company's balance sheet as of December 31, 2021 TACTEX CONTROLS INC Equity Section of the Balance Sheet December 31, 2021 Contributed Capital Total contributed capital
