The following data is related to Cold Brook Resources Ltd.:

During the year, the following transactions took place:
a. Earnings were $2,600,000.
b. Cash dividends were paid.
c. The common share fractional rights converted into common shares (80%), and the remainder (20%) lapsed.
d. Common shares plus $2 million cash were issued to acquire a patent that was valued at $6,500,000.
e. Contracts were signed to issue preferred shares with a total consideration of $4,000,000. 

The prospective shareholders paid $3,300,000 and will pay the balance within 12 months.
f. Preferred shares were retired for cash.
g. Additional common shares were issued for cash.
h. Retained earnings were reduced by $200,300 as the result of share issue costs.

Required:
1. Show the retained earnings T-account, beginning with the opening balance and going to the closing balance. Label all items that caused the change in the account.
2. Prepare the investing and financing sections of the SCF, in as much detail as possible with the information given. Dividends paid are included in financing activities.

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Preferred shares, no par Common shares, no par Preferred shares subscribed Common share fractional rights Contributed capital on lapse of rights Contributed capital on preferred share retirement Retained earnings Subscriptions receivable, preferred shares 20X9 $ 2,000,000 45,000,000 4,000,000 0 114,800 122,000 8,005,000 (700,000) 20X8 $ 3,000,000 36,000,000 0 574,000 0 0 5,940,000 0