Wilma Corporation reported the following amounts in its shareholders equity section on the December 31, 2014 balance sheet:

Preferred shares, $5 dividend, 10,000 shares authorized, $180,000

2,500 shares issued

Common shares, 100,000 authorized, 25,000 issued 100,000

Contributed Surplus^[1] 122,000

Retained Earnings 238,000

Accumulated Other Comprehensive Income 50,000

Total Shareholders Equity $690,000

During 2015, the following transactions impacted shareholders equity:

a) Jan 15: Purchased 6,000 shares of its own common shares for $26 per share and retired them

1. Feb 1: Issued 1,500 preferred shares at $75 per share
2. Nov 1: Declared a 10% stock dividend on the outstanding common shares when they were trading at $31 per share.
3. Dec 31: Declared the annual 2015, $5 per share preferred share dividend and a $3 per share dividend on the common shares. These dividends are payable in 2016.

Required:

a) Prepare journal entries for each of the transactions in 2015 (12 marks)

b) Assume 2015 net income was $280,000, and Total Comprehensive Income was $290,000, prepare the Shareholders Equity section of the Balance Sheet at December 31, 2015 (8 marks)

[1] Contributed surplus arose from common share transactions