The shareholders equity section of Toronto Corporations balance sheet at January 1, 2021 included the following:

Share capital:

$6 Preferred shares, no par value, unlimited number of shares

authorized, 5,000 shares issued $ 500,000

Common shares, unlimited number of shares authorized,

200,000 shares issued 1,800,000

Total share capital 2,300,000

Retained earnings 475,000

Total shareholders equity $2,775,000

Required:

Part A: Record the journal entries required for the following transactions of Trainer Corporation:

(1) Feb 10, 2022: Issued 30,000 common shares for cash at $2.30 per share

(2) July 10, 2022: Issued 1,000 preferred shares for cash at $95.00 per share

Part B: On Nov 1, 2022: The Board of directors declared a cash dividend in the total amount of $151,000 to preferred and common shareholders of record on Nov 30, 2022 payable on Dec 15, 2022. Record any necessary journal entries for the dates listed, making sure to separate amounts pertaining to common and preferred shareholders.

Part C: What are the balances in the following accounts (dollar value only) after closing entries are made on December 31, 2022, assuming that Net income for the year is $140,000.

• Dividends payable
• Preferred shares
• Common shares
• Retained earnings