Utopia Is A Destination Inc. had the following shareholders’ equity account balances on December 31, 2021:

During 2022, the following transactions occurred:

i. March 1: Utopia resold 500 of the treasury shares at $40 per share.
ii. May 15: Utopia issued (sold) 5,000 common shares for $25 each.
iii. December 15: The board of directors declared cash dividends of $4 per share, payable on January 15, 2023.
iv. December 31: Net income for the year ended December 31, 2022, was $200,000.

Utopia uses the single-transaction method for treasury shares.

Required:
a. Assume that Utopia follows the guidance in ASPE pertaining to accounting for equity transactions. Record the journal entries for the transactions in 2022 and make all the necessary year-end entries relating to shareholders’ equity accounts.
b. Prepare the presentation of the shareholders’ equity section of Utopia’s balance sheet as at December 31, 2022.

Common stock, no par, 60,000 shares authorized, 40,000 issued Contributed surplus on repurchases and resales Treasury stock, 3,000 shares Retained earnings Total shareholders' equity $ 800,000 20,000 (90,000) 400,000 $1,130,000