Reference no: EM132779224

Oak Corporation, a publicly traded company, is authorized to issue 212,000 $4 noncumulative preferred shares and an unlimited number of common shares. On January 1, 2021, the general ledger contained the following shareholders' equity accounts:

Preferred shares (7,600 shares issued)$418,000

Common shares (70,000 shares issued)980,000

Contributed surplus22,600

Retained earnings726,000

Accumulated other comprehensive income9,000

The following equity transactions occurred in 2021:

1. Feb.6 Issued 9,200 preferred shares for $561,200.
2. Apr.6 Issued 20,000 common shares for $550,000.
3. 27 Repurchased and retired 2,900 common shares at $16 per share. The balance in the Contributed Surplus account arose from the repurchase of common shares in prior years.
4. May29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1.
5. Aug.22 Issued 8,900 common shares in exchange for a building. At the time of the exchange, the building was valued at $173,400 and the common shares at $159,000.
6. Dec.14 The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders.
7. 31 Net income for the year was $595,000.

Problem 1: Record the above transactions, including any entries required to close dividends and net income.