Question 2 (20 points) Question 2 (40 minutes, 20 marks) Hex Corporation showed the following amounts in the equity section of its balance sheet at January 1, 2021: $500,000 Preferred Shares, $2 cumulative (in arrears for 2020), 10,000 shares issued Common shares 40,000 shares issued Retained Earnings $800,000 $500,000 In 2021: On Jan 20, 2021, 10,000 common shares were issued for $150,000. On Nov. 1. 2021. Cash dividends of $90,000 were declared. Dividends will be paid on January 18, 2022. On Dec. 31, 2021 Hex reported revenues of $150,000 and expenses of $80,000 for the year. Instructions: a) Prepare journal entries for 2021. Use an Income Summary account and Cash Dividends account as required. b) Prepare the statement of changes in shareholders equity for the year ended Dec 31, 2021. c) Prepare the balance sheet (partial) at Dec 31, 2021. Question 2 (20 points) Question 2 (40 minutes, 20 marks) Hex Corporation showed the following amounts in the equity section of its balance sheet at January 1, 2021: $500,000 Preferred Shares, $2 cumulative (in arrears for 2020), 10,000 shares issued Common shares 40,000 shares issued Retained Earnings $800,000 $500,000 In 2021: On Jan 20, 2021, 10,000 common shares were issued for $150,000. On Nov. 1. 2021. Cash dividends of $90,000 were declared. Dividends will be paid on January 18, 2022. On Dec. 31, 2021 Hex reported revenues of $150,000 and expenses of $80,000 for the year. Instructions: a) Prepare journal entries for 2021. Use an Income Summary account and Cash Dividends account as required. b) Prepare the statement of changes in shareholders equity for the year ended Dec 31, 2021. c) Prepare the balance sheet (partial) at Dec 31, 2021