Retired Shares-Entries and Reporting: On 1 January 20X5, BC Ventures Corporation reported the following in shareholders' equity:

\begin{array}{lr}
\text { Preferred shares, 3,000 shares outstanding, no-par } & \$ 72,000 \\
\text { Common shares, 20,000 shares outstanding, no-par } & 235,000 \\
\text { Retained earnings } & 75,000 \end{array}

During 20X5, certain shares were reacquired. In accordance with the regulations in BC Ventures' incorporating legislation, all reacquired shares were retired. Transactions were as follows:

Other transactions during the year:
30 July Stock dividend on common shares, 5\%, declared and distributed. The Board of Directors agreed to capitalize the dividend at the market value of \(\$ 7.75\).
30 November The Board of Directors declared a dividend adequate to pay \(\$ 1\) per share to all common sharcholders. This meant that they also had to declare the preferred dividend.

Required:
1. Prepare journal entries to reflect the above transactions. Show the split between common and preferred dividends in the dividend entries, as appropriate.
2. Prepare the shareholders' equity section of the SFP after reflecting the above transactions. Earnings were \(\$ 308,200\), and total comprehensive income was \(\$ 351,000\), reflecting earnings plus an additional gain of \(\$ 42,800\) on foreign exchange caused by a foreign subsidiary.

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15 January 12 February 25 February 26 April 16 July Bought 7,000 preferred shares for $5.20 per share Bought 2,000 common shares for $11 per share Bought 4,000 preferred shares for $4.00 per share Bought 5,000 preferred shares for $6.00 per share Bought 8,000 common shares for $7.50 per share