The balance sheet for Tactex Controls Inc., provincially incorporated in $2021,$ reported the following components of equity on

December $31,2022.$

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

$2023$

Jan. $1$ Sold $21,000$ common shares at $$9\mathrm{.}74$ per share.

$5$ The directors declared a total cash dividend of $$222,000$ 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 $$155,900.$ The average issue price was $$20$ per share.

Dec. $31$ Closed the dividend accounts along with the $$575,900$ credit balance in the Income Summary

account.

$2024$

Sept. $5$ The directors declared the required cash dividend on the preferred shares and a $$0\mathrm{.}5$ 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 $$542,300$ credit balance in the Income

Summary account.

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

$1$Record the issuance of $21,000$ 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 profit to retained earnings.

$7$Record the dividend declared on preferred shares and common shares.

$8$Record cash dividend paid.

$9$Record to close the cash dividends account.

$10$Record to close the income summary account.

$2.$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.$)$

$3.3.$ Prepare the equity section of the company$$s balance sheet as of December $31,2024.$