QUESTION 7 (34 marks) Chan Corporation is a well-established merchandizing company that specializes in home appliance. The company prepares its financial statements and adjusting entries at June 30 each year. The trial balance of the Chan Corporation at June 30, 2019 is presented on the page next. You are also required to take into consideration the following information: (1) At July 1, 2016,6%, $100 par value, 30,000 cumulative preference shares were authorized. 10,000 shares were issued and outstanding, There was no change in the financial year 2018/2019. At July 1, 2016, 100,000 ordinary shares of $20 par value were authorized. 80,000 shares were issued and outstanding. There were changes in the financial year 2018/2019. You are required to account for these changes in the financial records. In addition to the account titles used in the trial balance, the Chan Corporation also uses the following account titles: Depreciation expense: Building Depreciation expense: Equipment Dividends Dividends payable Interest expense Interest payable Interest receivable Interest revenue Income taxes expense Income taxes payable Prepaid rent Salary payable Share premium: Treasury shares Supplies Supplies expense Utilities expense QUESTION 7 (34 marks) Chan Corporation is a well-established merchandizing company that specializes in home appliance. The company prepares its financial statements and adjusting entries at June 30 each year. The trial balance of the Chan Corporation at June 30, 2019 is presented on the page next. You are also required to take into consideration the following information: (1) At July 1, 2016,6%, $100 par value, 30,000 cumulative preference shares were authorized. 10,000 shares were issued and outstanding, There was no change in the financial year 2018/2019. At July 1, 2016, 100,000 ordinary shares of $20 par value were authorized. 80,000 shares were issued and outstanding. There were changes in the financial year 2018/2019. You are required to account for these changes in the financial records. In addition to the account titles used in the trial balance, the Chan Corporation also uses the following account titles: Depreciation expense: Building Depreciation expense: Equipment Dividends Dividends payable Interest expense Interest payable Interest receivable Interest revenue Income taxes expense Income taxes payable Prepaid rent Salary payable Share premium: Treasury shares Supplies Supplies expense Utilities expense