Preferred shares, $\backslash (\backslash$$ $8\backslash )$ dividend, cumulative and fully participating $(20,000$ authorized; $1,000$ issued and outstanding$)$ Note $1$: On December $31,$ Year $9,$ dividends on preferred shares were one year in arrears. Several transactions affecting shareholders' equity took place during the fiscal year ended December $31,$ Year $10,$ and are summarized in chronological order as follows. $1.$ On March $1,$ the company issued $10,000$ common shares as a result of the conversion of convertible bonds at the option of bondholders. On the transaction date, the carrying value of the bonds was $\backslash (\backslash$$ $97,000\backslash )$ and the carrying value of the conversion option was $\backslash (\backslash$$ $1,000\backslash ).$ HFO's shares were actively trading at $\backslash (\backslash$$ $10\backslash )$ per share. $2.$ On June $1,$ the company exchanged $10,000$ common shares for special equipment. The equipment was valued at $\backslash (\backslash$$ $120,000\backslash )$ by an independent appraiser. On the transaction date, HFO's shares were actively trading at $\backslash (\backslash$$ $12\backslash )$ per share. $3.$ On September $1,$ the company purchased and retired $14,000$ common shares at $\backslash (\backslash$$ $14\backslash )$ per share. $(1)$ Prepare the journal entry related to September $1$ transaction. $[11$ marks$](2)$ Total dividends of $\backslash (\backslash$$ $100,000\backslash )$ were declared on December $15,$ Year $10.$ Determine the dividends amount to be allocated to the shareholders of preferred shares. $[15$ marks$]$