The balance sheet for Tactex Controls Inc., provincially incorporated in 2012, reported the following components of equity on December 31, 2013.

In 2014 and 2015, the company had the following transactions affecting shareholders and the equity accounts:

Required
1. Prepare journal entries to record the transactions and closings for 2014 and 2015.
2. Prepare a statement of changes in equity for the year ended December 31, 2015.
3. Prepare the equity section of the company€™s balance sheet as of December 31,2015.

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Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2013 Contributed capital: Preferred shares, $2.10 cumulative, unlimited shares authorized; 20,000 shares issued and outstanding 392,000 Common shares, unlimited shares authorized; 75,000 shares issued and outstanding. 735,000 $1,127,000 378,000 Total equity 2014 1 5 Sold 30,000 common shares at $10.64 per share. The directors declared a total cash dividend of $231,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2012 and 2013. All of the preferred shares had been issued during 2012. Paid the dividends declared on January 5. Jan. Feb. July 28 Sold preferred shares for a total of $156,800. The average issue price was Closed the dividend accounts along with the $576,800 credit balance in the $22.40 per share. Dec. 3 Income Summary account. 2015 5 Sept. The directors declared the required cash dividend on the preferred shares and a $1.40 per common share cash dividend payable on Oct. 28 to the Oct. 5 shareholders of record. Oct 28 Paid the dividends declared on September 5. Dec. 3 Closed the Cash Dividends account along with the $543,200 credit balance in the Income Summary account.