Zlin Aerospace Corporation reported the following equity account balances on December 31, 2013:
Preferred shares, $3.60 cumulative, unlimited shares authorized ........................ $ -0-
Common shares, unlimited shares authorized,
20,000 shares issued and outstanding ............................................................ 552,000
Retained Earnings............................................................................................... 324,000

In 2014, the company had the following transactions affecting shareholders and the shareholders€™ equity accounts:

Required
1. Prepare journal entries to record the transactions and closings for 2014 (assume the retirements were the first ever recorded by Zlin Aerospace).
2. Prepare the statement of changes in equity for the year ended December 31,2014.

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Jan. 1 14 Purchased and retired 2,000 common shares at $36 per share. The directors declared a 10% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $45.60 per share Date of record regarding the 10% share dividend. Date of distribution regarding the 10% share dividend. Sold 5,000 preferred shares at 560 per share. The directors declared a total cash dividend of $48,000 payable on October 5 to the September 20 shareholders of record. The cash dividend declared on September 5 was paid. Closed the $465,600 credit balance in the Income Summary account to Retained Earnings Closed the dividend accounts. Feb. July Sept. 30 5 6 5 Oct. Dec. 5 31 31