The general ledger of Maggio Corporation, a publicly traded company, contained the following shareholders' equity accounts in 2012:

A review of the accounting records for the year ended December 31, 2012, reveals the following information:
1. On March 1, 20,000 no par value common shares were sold for $17.50 per share. An unlimited number are authorized.
2. On August 18, a 6% common stock dividend was declared for 16,500 shares when the share price was $18. The stock dividend was distributed on September 25.
3. The preferred shares are $4 cumulative no par value. An unlimited number of preferred shares are authorized. The quarterly preferred shareholders' dividend was declared and paid in 2012 for each quarter.
4. Profit for the year was $750,000.
5. On December 31, the directors authorized a $200,000 restriction on retained earnings in accordance with a debt covenant.
Instructions
(a) Reproduce the Preferred Shares, Common Shares, Contributed Capital, and Retained Earnings general ledger accounts for the year.
(b) Prepare the shareholders' equity section of the statement of financial position at December 31, including any required note disclosure.

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Dec. 31 $ 750,000 3,857,000 200,000 1,373,000 Jan. 1 750,000 Preferred shares (15,000 and 15,000 shares issued, respectively) Common shares (255,000 and 291,500 issued, respectively) Contributed capital-reacquisition of common shares Retained earnings 3,210,000 200,000 980,000