Time Travel Ltd. reported the following accounts and their balances as at April 1, 2015, the beginning of the current fiscal year:

Common shares, unlimited authorized,

40,000 shares issued and outstanding . . . . . . . . . . . . . . . . . $1,150,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 980,000

$2 preferred shares, unlimited authorized,

30,000sharesissuedand outstanding . . . . . . . . . . . . . . . . . . 210,000

The company reported the following results for the year:

Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000

Dividend declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

Common shares issued, 10,000. . . . . . . . . . . . . . . . . . . . 300,000

Preferred shares issued, 5,000. . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Instructions

1. Journalize the share issuances and year-end closing entries.

2. Prepare a statement of changes in equity for the year ended March 31, 2016.