Pharma Shop Ltd. was a mid-sized public company that had been in operation for many years. On December 31, 2015, it had an unlimited number of common shares authorized and 5.2 million shares issued at an average value of $25 per share. As well, there were 5 million preferred shares authorized, with 250,000 of them issued at $20 per share. The balance in retained earnings was $26,610,000. The balance in accumulated other comprehensive in- come was $525,000. The preferred shares pay an annual dividend of $2 per share. During 2016, the following transactions affected shareholders’ equity:

1 In total, 200,000 new common shares were issued at $30 per share.

2. The preferred dividend for the year was declared and paid.

3. A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one month after the declaration.

4. In early December 2016, a dividend of $1.50 per share was declared on the common shares. The date of record was December 15, 2014. The dividend will be paid the following year.

5. The company earned a net income of $14,820,000 and had another comprehensive loss of $145,000.

6. On December 31, 2016, the company declared a two-for-one stock split on common shares.

Required:

a. Use a spreadsheet or table format like the one in the first practice problem to track all of the changes in the shareholders’ equity accounts in 2016.

b. Prepare the statement of changes in shareholders’ equity for 2016 and the shareholders’ equity section of the statement of financial position as at the end of 2016.