The December 31, 2014, equity section of Zalicus Inc.s balance sheet appears below.

Zalicus Inc.
Equity Section of the Balance Sheet
December 31, 2014
Contributed capital:
Preferred shares, $3.75 cumulative, 35,000 shares authorized and issued	$	1,610,000
Preferred shares, $10 non-cumulative, 8,500 shares authorized and issued		620,000
Common shares, 350,000 shares authorized and issued		1,700,000
Total contributed capital	$	3,930,000
Retained earnings		716,600
Total equity	$	4,646,600

Required:

All the shares were issued on January 1, 2012 (when the corporation began operations). No dividends had been declared during the first two years of operations (2012 and 2013). During 2014, the cash dividends declared and paid totalled $588,300.

1.	Calculate the amount of cash dividends paid during 2014 to each of the three classes of shares and Assuming net income earned during 2014 was $1,225,000, determine the December 31, 2013, balance in retained earnings.

2.

Prepare a statement of changes in equity for the year ended December 31, 2014