Authorized to issue $100,000$$$4$ cumulative preferred shares and up to $200,000$ common shares, Smith

Company Ltd$.$ currently has $$4,500$ common shares outstanding worth $$227,500$ and no preferred

shares issued. The general ledger shows the opening retained earnings is $$266,000.$

The following transactions occurred during $2025$:

REQUIRED:

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

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

Prepare the equity section as it would be presented in the balance sheet as at December $31,$

$(4$ marks$)$

Smith Company Inc. originally issued its $8,100$ common shares at $$29$ per share and all are

outstandings as of August $1,2021.$

REQUIRED:

Prepare general journal entries for the following:

Aug $1,2021-$ Purchased and retired $600$ common shares at $$\frac{19}{?}$ share. $(3$ marks$)$

Sep $1,2021-$ Purchased and retired $500$ common shares at $$37$ per share. $(4$ marks$)$