Reference no: EM132461757

The balance sheet for Umi Sustainable Seafood Inc. reported the following components of equity on December 31, 2019:

Common shares, unlimited shares authorized,   20,100

shares issued and outstanding                   $369,000

Retained earnings                                      217,000

Total equity                                            $586,000

In 2020, Umi had the following transactions affecting shareholders and the equity accounts:

1. Jan.5 The directors declared a $3.30 per share cash dividend payable on Feb. 28 to the Feb. 5 shareholders of record.
2. Feb.28 Paid the dividend declared on January 5.July6 Sold 800 common shares at $38.50 per share.
3. Aug.22 Sold 1,300 common shares at $27.30 per share.Sept.5 The directors declared a $3.30 per share cash dividend payable on October 28 to the October 5 shareholders of record.
4. Oct.28 Paid the dividend declared on September 5.Dec.31 Closed the $347,300 credit balance in the Income Summary account. 31 Closed the Cash Dividends account.

Required:

Question 1. Prepare journal entries to record the transactions and closings for 2020. The company uses a Cash Dividends account when dividends are declared.