The equity section of the December 31, 2020, balance sheet for Cotton Tail's Egg Emporium Inc. showed the following: Cotton Tail's Egg Emporium Inc. Equity Section of the Balance Sheet December 31, 2020 $562,500 Contributed capital: Preferred shares, $4.15 cumulative; 150,000 shares authorized; 45,000, shares issued and outstanding Common shares; 750,000 shares authorized; 220,000, shares issued and outstanding Total contributed capital Retained earnings Total equity 1,100,000 $1,662,500 1,423,570 $3,086,070 During 2021, the company had the following transactions affecting equity accounts: Feb 6 Issued 85,000 common shares at $5.75 per share. May, 22 Issued 26,000 preferred shares at $11.20 per share. Aug 5 In addition to the declaration of the annual dividend on the preferred shares, the directors declared a $2.10 per common share cash dividend payable on September 28 to the September 5 shareholders of record. Sept. 28 Paid the dividend declared on August 5. Dec 31 Closed the $12,500 debit balance in the Income Summary account. Required 1. Prepare the journal entries to record the transactions and closings for 2021. 2. Prepare the statement of changes in equity for the year ended December 31, 2021