The following summaries for Play-time Equipment Ltd. and Lil-tikes Products Inc. provide the information needed to prepare the shareholders' equity section of each company's balance sheet. The two companies are independent.

Play-time Equipment Ltd. This company is authorized to issue 200,000 common shares. All the shares were issued at $3.00 per share. The company incurred a net loss of $75,000 in 2011 (its first year of operations) and a net loss of $30,000 in 2012. It earned net incomes of $35,000 in 2013 and $60,000 in 2014. The company declared no dividends during the four-year period.

Lil-tikes Products Inc. Lil-tikes Products Inc.'s articles of incorporation authorize the company to issue 200,000 cumulative preferred shares and 1,000,000 common shares. Lil-tikes Products Inc. issued 2,000 preferred shares at $12.50 per share. It issued 100,000 common shares for $300,000. The company's Retained Earnings balance at the beginning of 2014 was $75,000. Net income for 2014 was $50,000, and the company declared the specified preferred share dividend for 2014. Preferred share dividends for 2013 were in arrears. The preferred dividend was $1.10 per share per year.

Required

For each company, prepare the shareholders' equity section of its balance sheet at December 31, 2014. Show the computation of all amounts. Journal entries are not required.