Shareholders' equity information is given for Rexell Inc. and Raonic Corp. The two companies are independent.

Rexell Inc. Rexell Inc. is authorized to issue 100,000 common shares. All the shares were issued at $10.00 per share. The company incurred a net loss of $30,000 in 2012, its first year of business. It earned net income of $45,000 in 2013 and $50,000 in 2014. The company declared no dividends during the three-year period.

Raonic Corp. Raonic Corp.'s articles of incorporation authorize the company to issue 50,000 $1.25 cumulative preferred shares and 500,000 common shares. Raonic Corp. issued 4,000 preferred shares at $10.00 per share. It issued 60,000 common shares for a total of $150,000. The company's retained earnings balance at the beginning of 2014 was $55,000, and net income for the year was $62,500. During 2014, the company declared the specified dividend on preferred and a $0.50 per share dividend on common. Preferred dividends for 2013 were in arrears.

Required

For each company, prepare the shareholders' equity section of its balance sheet at December 31, 2014. Show the computation of all amounts. Journal entries are not required.