Q2. Problem Solving (15 marks)

On 1 January 2021, ADE Ltd. reported the following in shareholders equity: Preferred shares, no-par value; authorized, unlimited shares; issued, 100,000 shares	$	2,500,000
Common shares, no-par value; authorized, unlimited shares; issued, 620,000 shares		4,960,000
Contributed capital on retirement of preferred shares		30,000
Retained earnings		3,850,000

The company acquired and retired shares in the following sequence during 2021: Retired 20,000 common shares at $12 per share.

1. Retired 30,000 common shares at $6 per share.
2. Retired 10,000 preferred shares at $30 per share.
3. Retired 5,000 preferred shares at $22 per share.

Required:

1. Prepare journal entries for the share retirement transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Retired 20,000 common shares at $12 per share.

2. Retired 30,000 common shares at $6 per share.

3. Retired 10,000 preferred shares at $30 per share.

4. Retired 5,000 preferred shares at $22 per share.

2. Calculate the balances in each equity account, after the effects of the transactions in requirement

Preferred Shares
Common Shares
Contributed capital on retirement of preferred shares
Retained earnings
Contributed capital on retirement of common shares