Authorized to issue $100,000$ $$4$ cumulative preferred shares and up to $200,000$ common shares, Smith Company Ltd$.$ currently has $54,500$ common shares outstanding worth $$227,500$ and no preferred shares issued. The general ledger shows the opening retained earnings is $$266,000.$Authorized to issue $100,000$ $$4$ cumulative preferred shares and up to $200,000$ common shares, Smith Company Ltd$.$ currently has $54,500$ common shares outstanding worth $$227,500$ and no preferred shares issued. The general ledger shows the opening retained earnings is $$266,000.$

The following transactions occurred during $2025$:

$-$Jan. $28$ Smith Company Ltd$.$ issued $4,800$ common shares in exchange for vehicles valued at

$$74,000.$

$-$Feb. $22$The board of directors delcared a $5\%$ share dividend to shareholders of record on Mar. $3,$ to be distributed on Mar. $26.$ The shares trade for $$4$ a share.

$-$Mar. $26$Issued the share dividend.

$-$Apr. $23$Sold and issued $12,000$ preferred shares for cash at $$29$ per share.

$-$May $12$The board declared total cash dividends of $$74,000$ to shareholders of record on May $18,$ payable onJun. $6.$

$-$Jun. $6$ Paid the cash dividend.

$-$Aug. $4$The board decided to split the common shares $5$ to $1$ effective Sep. $13.$

$-$Sep. $13$Share split $(5$ to $1)$ executed.

$-$Dec. $31$Smith Company Ltd$.$ earned a net income of $$309,000$ for the year. Close out the income summary accounts.

REQUIRED:

$1)$ Record the relevant entries in general journal form $(23$ marks$)$

$2)$ Prepare a statement of changes in equity for the year ended $2025.(6$ marks$)$

$3)$ Prepare the equity section as it would be presented in the balance sheet as at December $31,2025.(4$ marks$)$t and any other temporary equity accounts.