Moreland Holdings Inc. has authorized share capital of an unlimited number of common shares and

$1,000,000$ preferred, $$3-$cumulative preferred shares. At January $1,2008,$ the balances in its share capital

accounts were $$45,000$ in common shares representing $15,000$ shares and $$30,000$ in preferred shares

representing $1,000$ shares. The company had a balance of $$50,000$ in contributed capital from previous

years' repurchase of common shares. The retained earnings balance on that date was $$180,000$ and

accumulated other comprehensive income was $$62,000.$ Net income for the year ending December $31,$

$2008$ was $$24,000$ and other comprehensive income items for the year were $$5,000.$ There were no

dividends in arrears at January $1,2008$ and no dividends were declared during $2008.$

During $2008,$ Moreland had the following share transactions:

Mar. $1$ Issued $4,000$ common shares for $$5$ each.

Jun. $30$ Issued $500$ preferred shares for $$11$ each.

Sep. $1$ Issued $60,000$ common shares in exchange for land valued at $$285,000.$

Dec. $1$ Reacquired $50,000$ common shares for $$5\mathrm{.}25$ each.

Instructions

$($a$)$ Journalize the share transactions.

$($b$)$ Prepare the equity section of Moreland's balance sheet at December $31,2008$ and describe any

$($c$)$ additional disclosure required related to share capital.

$($c$)$ Calculate return on equity for $2008.$