Assignment 5 - Chapters 7 & 8 COM204 Fall 2020 Question 4 (16 marks) The articles of incorporation for Calico Beans Ltd. ("CBL") authorize the company to issue 100,000, $2.50 preferred shares and 1,000,000 common shares. During its first year of operations, CBL completed the following transactions: 2020 Jan 3 Issued 200,000 common shares receiving cash of $600,000. Jan 28 Issued 15,000 preferred shares receiving cash of $30,000 Jan 30 Issued 10,000 common shares in exchange for equipment valued at $75,000 Dec 15 CBL declared dividend $250,000 to its shareholders. Dec. 28 CBL paid cash dividend. Required: (a) Record the transactions in the general journal (b) Prepare the shareholders equity section of CBL balance sheet at December 31, 2020 assuming the company earned $890,000 in net income and paid $150,000 in dividends during its first year of operations. DATE ACCOUNT DEBIT CREDIT