The balance sheet for QuStream Inc. reported the following components of equity on December 31, 2014:

Common shares, unlimited shares authorized,

100,000 shares issued and outstanding........................................................... $480,000

Retained earnings................................................................................................ 648,000

Total equity ......................................................................................................... $1,128,000

The company completed these transactions during 2015:

Required
1. Prepare General Journal entries to record the transactions and closings for 2015.
2. Prepare a statement of changes in equity for the year ended December 31, 2015.
3. Prepare the equity section of the company’s balance sheet as of December 31, 2015.
Analysis Component: How much of QuStream’s assets are financed by the common shareholders at December 31, 2015? Explain what other sources of financing areavailable.

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The directors declared a $0.90 per share cash dividend payable on March 31 to the March 15 shareholders of record. Paid the dividend declared on March 2 Issued 12,000 common shares at $7.80 per share. Issued 8,000 common shares at $5.70 per share. The directors declared a $1.50 per share cash dividend payable on January 2, 2016, to the December 10 shareholders of record. Closed the $321,600 credit balance in the Income Summary account to Retained Earnings. Closed the Cash Dividends account. Mar. 2 31 11 25 1 Nov. 31 31