please may I have a solution step by step

specially the retained earnings

Thank you

Exercise 2 Given the following data for 2015: Common stock Preferred stock, 5% Paid-in capital in excess of par Retained earnings (opening balance, credit) Cash dividends distributed in 2015 Treasury shares (purchase price 5.8) Net profit for the year 2015 Par value per share of common stock Par value per share of preferred stock 1,250,000 350,000 2,345,000 647,000 6,500 139,200 165,000 2 2 Required: 1. Prepare the shareholder's equity section of the balance sheet as of December 31, 2015; 2. Determine the total paid-in capital; 3. Calculate the book value per share of common stock and preferred stock, considering that preferred dividends in arrears are 11,000 4. Journalize the following transactions in 2016: a) distribution of a 5% stock dividend to the common shareholders; b) distribution of a cash dividend of 82,000, attributing the maximum amount possible to common shareholders after satisfying the claims of the preferred shareholders (dividends of 11,000 are in arrears); sale of 50% of the treasury shares for 7 each. 5. Report the shareholders' equity and calculate the book value per share of common stock and preferred stock after the above mentioned transactions