v$121$

Saskatoon Supermarket Ltd$,$ can issue $50,000$$$3$ cumulative preferred shares. The company's letters patent authorizes up to $500,000$ common shares, and the corporation has $50,000$ common shares outstanding with a book value of $$226,000.$ Presently, no preferred shares are issued. The opening retained earnings equals $$429,000.$

$\backslash$table$[[$Jan$.1,\backslash$table$[[$Saskatoon Supermarket Ltd$.$ Issued $5,200$ common shares in exchange for land worth$],[$$$65,000.(1$ marks$)]]],[$Feb$.15,\backslash$table$[[$The board of directors delcared a $4\%$ share dividend $($market value $$\frac{6\mathrm{.}00}{?}$ share$)$ to$],[$shareholders of record on Mar. $1($market value $$\frac{4\mathrm{.}75}{?}$ share$)$ to be distributed on Mar. $15],[($market value $$\frac{5\mathrm{.}25}{?}$ share$).(3$ marks$)]]],[$Mar$.15,$Issued the share dividend. $(1$ mark$)],[$Apr$.15,$Sold and issued $12,000$$$3$ cumulative preferred shares for cash at $$18$ per share. $(1\mathrm{.}5$ marks$)],[$May$.18,\backslash$table$[[$The Board declared total cash dividends of $$109,000$ to shareholders of record on May $31,],[$payable on Jun. $18.(3\mathrm{.}5$ marks$)]]],[\backslash$table$[[$Jun$.18]],$Paid the cash dividend. $(1$ marks$)],[$Aug$.4,$The board decided to split the common shares $3$ to $1,$ effective the same day. $(1$ mark$)],[$Dec$.31,\backslash$table$[[$Saskatoon Supermarket Ltd$.$ Earned a net income of $$261,000$ for the year. Close out the$],[$income summary account and any other temporary equity accounts. $(2$ marks$)]]]]$

REQUIRED:

Record the journal entries needed to document the transactions from above.

Prepare a statement of changes in equity for the year ended December $31,2021.(8$ marks$)$

Prepare the equity seciton as it would be presented in the balance sheet as at December $31,2021.(4$ marks$)$

$\backslash$table$[[$Date$,$Account Thue & Explanation,Debit,Credit$],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$