Question 3 - (20 marks) Pace Oil & Gas Corp began operations in 2019. Its balance sheet reported the following components of equity on December 31, 2019. Preferred shares, $2.80 non-cumulative, unlimited shares Authorized: 25,000 shares issued and outstanding......$ 750,000 Common shares, unlimited shares authorized, 100,000 shares issued and outstanding... 1.755.000 Total contributed capital..... 2,505,000 Retained earnings... 711,000 Total equity... $3216.000 The company completed these transactions during 2020 and 2021: 2020 Jan 1 Sold 50,000 common shares at $12.40 per share Jan 5 The directors declared the first cash dividends totaling $201,250, payable on Feb. 28 to the Feb. 5 shareholders of record. Feb 28 Paid the dividend declared on Jan. 5. Jul 1 Issued preferred shares for a total of $517,000. The average issue price was $25.85 per share. Dec 31 Closed the cash dividend accounts (if created) along with the Income Summary account, which reflected profit earned during 2020 of $768,000 3 Answer Question 3 - Part 1 - (Continued): Date Account Debit Credit Question 3 - Answer - Part 2