3 4 5 6 7 8 Question 2: Shareholders' Equity (15 marks) All answers must be completed in Excel using the blue boxes provided. Make sure to show all calculations in the blue boxes! Any workspace provided is NOT for marks. John Fence Co. shows the following equity accounts at December 31, 2020: Preferred shares. $2.00 cumulative, 500,000 shares authorized, 5,000 shares issued and outstanding $ 92,000 Common shares, unlimited number of shares authorized, 71 75,000 shares issued and outstanding 956,250 12 Contributed surplus - common shares 12,800 13 Retained earnings 425,000 $1,486,050 5 Following are transactions that took place in 2021: 10 94 PART A REQUIRED (13 marks): Prepare the journal entries to record the transactions below. If another form of entry is needed, select appropriately from the drop-down box for the debit row ONLY! PART A REQUIRED (13 marks): Prepare the journal entries to record the transactions below. If another form of 16 entry is needed, select appropriately from the drop-down box for the debit row ONLY! 17 18 Jan. 13 Purchased and retired 2,000 common shares today for a price of $18 per common share. 79 20 Date Account Title Debit Credit 21 Jan. 13 22 23 24 25 Feb. 20 Declared a 2-for-1 stock split on common shares and issued new common shares. 26 Date Account Title Debit Credit 27 Feb. 20 8 May. 12 Issued 8,125 common shares and 3,000 preferred shares for a lump sum of $200,000 cash. At th time of the issuance, the market values are $12 per share for the common shares and $17.50 pe share for the preferred shares. TI 30 May 12 Issund 8,125 common shares and 3,000 preferred shares for a lump sum of $200,000 cash. At the time of the issuance, the market values are $12 per share for the common shares and $17.50 per share for the preferred shares. 31 Credit Date Account Title Debit 33 May. 12 34 35 36 Jul. 15 Issued subscriptions for 20,000 common shares at a price of $14. 37 38 Date Account Title Debit 39 Jul. 15 40 Credit 41 Sept.16 Ten percent (10%) of the subscription price from the July 15th subscription issuance is received today. The remaining balance is due on January 1, 2022. Date Account Title Debit Credit Sept.16 3 JI Sept. 16 Ten percent (IONof the subscription price from the July 15th subscription issuance is received today. The remaining balance is due on January 1, 2022. Date Account Title Debit Credit 44 Sept. 16 PART B REQUIRED [2 marks): Using the blue box provided below, explain when the common shares associated 47 with the subscriptions issued July 15 will be issued. Please use a complete sentence for your explanation. 8