The shareholders' equity section of RE Inc. appears as follows at December 31, 2016: Contributed capital: Preferred shares, $10 cumulative, unlimited shares authorized, 1,000 shares issued and outstanding $ 100,000 Common Shares, unlimited shares authorized, 22,000 shares issued and outstanding 660,000 Total contributed capital 760,000 Retained earnings 140,000 Total shareholders equity $ 900,000 The company was incorporated on January 1, 2016, and no dividends were declared in 2016.

BELOW ARE THE 2017 JOURNAL ENTRIES:

Jan 1 Purchased and retired 1,000 common shares at $28 per common share (3 marks).

Mar 15 Issued 1,000 common shares for $41 each (2 marks). April 1 Sold 2,000 preferred shares for $100 per share (2 marks).

May 1 The directors declared a total cash dividend of $48,000 payable on June 1 to the May 31 shareholders of record (4 marks)

June 1 The cash dividend declared on May 1 was paid (3 marks).

Jun 30 Purchased and retired 2,000 common shares at $33 per common share (4 marks).

Nov 30 The directors declared a 10% common share dividend distributable on December 15 to the Dec 5 shareholders of record. The shares were trading at $35 per share on November 30 (4 marks).

Dec 15 Date of distribution regarding the 10% share dividend (3 marks).

Dec 31 Closed the $27,000 credit balance in the income summary account (2 marks).