A 1 Question 5: 6 marks (15 minutes) 2 3 4 On January 1, 20x1, Raven Ltd. had 40,000 shares of common shares issued and outstanding. The book value of those shares was $600,000. Furthermore, they had 10,000 $3, cumulative, preferred shares issued and outstanding which had a book value of $200,000. 5 6 The following transactions took place in 20x1: 7 8 Feb 28 - Issued 20,000 common shares for $500,000 9 10 Jun 1 - Repurchased and cancelled 20,000 shares at $20.00 each. 11 12 Jun 30 - A 2:1 stock split was announced 13 14 Dec 15 - Declared a dividend of $2.00/share to shareholders of record on Dec 31. 15 16 Required - 17 18 Prepare all journal entries to record the above transactions. Round to two decimal points on any calculations. 19 20 21 22 23 24