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

Common shares, unlimited shares authorized,

20,000 shares issued and outstanding ............................................................ $368,000

Retained earnings............................................................................................... 216,000

Total equity........................................................................................................ $584,000

In 2015, Umami had the following transactions affecting shareholders and the equity accounts:

Required
1. Prepare 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 corporation’s balance sheet as of December 31, 2015.
Analysis Component: Explain the relationship between assets and retained earnings; use your answer in Part 3 above as part of theexplanation.

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Jan. 5 The directors declared a $3.20 per share cash dividend payable on Feb. 28 to the Feb. 5 shareholders of record Paid the dividend declared on January 5. Sold 750 common shares at $38.40 per share. Sold 1,250 common shares at $27.20 per share The directors declared a $3.20 per share cash dividend payable on Oct. 28 to the Oct. 5 shareholders of record. Paid the dividend declared on September 5. Closed the $347,200 credit balance in the Income Summary account. Closed the Cash Dividends account. Feb. July Aug. Sept. 28 6 22 5 Oct. Dec. 28 31 31