Case three:

$(25$ marks$)$

Sass Company authorize to issue at $\frac{1}{1}\frac{?}{2019}$ : Ordinary, S$1$par value per share, $5,000,000$ shares

Preference $5\%$;$$50$ par value per share, $10,000$ shares, Cumulative and fully participate

$1-$ January $2019$ issued for cash $1000,000$ ordinary for $$2\mathrm{.}5,$ and $5000$ preferences for $$80.$

$2-$ July $1,2019$ issued $2,500,000$ shares when the market price was $$2$ for a group purchases $($ land, building and factory$),$ the building fair market value was $1800,000,$ the land fair market was $2,500,000)$ and factory fair market value was $1,700,000.3-$ January $1,2020$ issued $5000$ preference shares for $300,000$cash. $4-$ Agust$1,2020$ issued $1,000,000$ ordinary shares for cash at $$3\mathrm{.}5.$

$5-$ September $\frac{1}{2020}$ the company purchase $50,000$ from its outstanding shares for $5S$ each.

$6-$ October $1,2020$ the company purchased $10,000$ shares of sully company for $100,000$$ and $22,000$ shares of family company for $5$$ each share

$7-$ November $1/2020$ the company sold $5,000$ from repurchased shares for $$5\mathrm{.}5.$

$8-$ November $30/2020$ the company sold $10,000$ from repurchased shares for $$4.9-$ December $\frac{1}{2020}$ the company received $10,000S$ from sully as dividend $10-$ December $31/12/2020$ sully share market price was $9\mathrm{.}5S$ and family shares was $6S11-$ December $31/12/2020$ the company declared cash dividend $$300,000$ for all outstanding shares in $\frac{31}{12}\frac{?}{2020},$ there wasn't and dividend in $2019.12-$The net income for the years $2019$ was $$400,000$ and $450,000$$ for the year $2020$

Required:

$1-$Prepare all required entries during $2019$ and $2020$

$2-$prepare the distribution of dividend between preference and ordinary shares

$3-$prepare owner equity section in $\frac{31}{12}\frac{?}{2020}.$