The general ledger of Robichaud Corporation, a publicly traded company, contained the following shareholders' equity accounts in 2015:

                                                                                                                             January 1       December 31

Preferred shares (10,000 and 20,000 shares issued, respectively) ........$ 500,000 ......$1,000,000

Common shares (320,000 and 370,000 shares issued, respectively) .....2,700,000 ........3,700,000

Stock dividends distributable ..............................................................................0 .................407,000

Retained earnings ..........................................................................................2,980,000 ........3,345,000

A review of the accounting records for the year ended December 31, 2015, reveals the following information:

1. On January 1, 10,000 $5 noncumulative preferred shares were issued for $50 each. An unlimited number are authorized.

2. On October 1, 50,000 common shares were sold for cash at $20 per share. An unlimited number are authorized.

3. The annual preferred shareholders' cash dividend was declared and paid during the year.

4. On December 31, a 5% stock dividend was declared on common shares when the share price was $22. The stock dividend is distributable on January 20.

5. Profit for the year was $872,000.

6. On December 31, the board of directors authorized a $500,000 restriction on retained earnings for a plant expansion.

Instructions

(a) Reproduce the Preferred Shares, Common Shares, Stock Dividends, Stock Dividends Distributable, and Retained Earnings general ledger accounts for the year.

(b) Prepare the shareholders'