1. Humbolt Hardware Ltd. can issue 90,000$3 cumulative preferred shares. The company's letters patent authorizes up to 750,000 common shares, and the corporation has 73,000 common shares outstanding with a book value of $230,000. Presently, no preferred shares are issued. The opening retained earnings equals $312,500. Jan. 16$53,000.(1 marks) The board of directors delcared a 10% share dividend (market value $7.00/ share) to Feb. 24 shareholders of record on Mar. 1 (market value $4.75/ share) to be distributed on Mar. 27 (market value $5.25/ share). ( 3 marks) Mar. 27 Issued the share dividend. (1 mark) Sold and issued 9,000$3 cumulative preferred shares for cash at $22 per share. (1.5 marks) The Board declared total cash dividends of $98,000 to shareholders of record on May May. 24 31, payable on Jun. 21. (3.5 marks) Jun. 21 Paid the cash dividend. (1 marks) Aug. 13 ine Do Dec. 31 Humbolt Hardware Ltd. Earned a net income of $229,000 for the year. Close out the income summary account and any other temporary equity accounts. (2 marks) REQUIRED: 1) Record the journal entries needed to document the transactions from above. 2) Prepare a statement of changes in equity for the year ended December 31, 2021. ( 8 marks) 3) Prepare the equity seciton as it would be presented in the balance sheet as at December 31, 2021. (4 marks)