Account name Accounts Payable Accounts Receivable Debit Credit $ $ 18,000 54,000 Accumulated Depreciation furniture & fixtures Accumulated Depreciation - Computer Hardware 30000 0 Accumulated Other Comprehensive Income Advertising Expense Allowance for Doubtful accounts Bad debt expense 16,000 45,000 16,000 16,000 Cash Common Shares (unlimited number of shares authorized, 1000 137,000 50,000 issued) Contributed Surplus Depreciation Expense- Computer HW Depreciation Expense- Furniture and fixtures Computer Hardware 10,000 0 0 115,000 Furniture and fixtures Goodwill Income tax expense 50,000 77,000 20,000 Income tax payable 11,000 Insurance & licensing expense 8,000 Note Payable (instalments of $13,100/year) 131,000 Prepaid Rent 10,000 Rent Expense 85,000 Retained Earnings, beginning of year 87,000 Revenues 582,000 1. On December 10, 2021, the company declared $35,000 cash dividends for year 2021. The dividends were paid on January 10, 2022. 2. On July 1, 2021, the company declared a 15% common stock dividends when market share price was $600. The shares were distributed on November 15th, 2021 when market share price was $720. 3. The Supplies as at December 31, 2021 should only be $20,000. 4. The Computer Hardware were purchased on Jan 1, 2021. It has a useful life of 10 years, with no expected residual value. Company uses the straight-line depreciation method. No depreciation was recorded for year 2021. 5. The Furniture & fixtures were purchased on Jan 1, 2015 and were expected to have a useful life of ten years. On Jan 1, 2022 the company donated the entire furniture & fixtures were scrapped with zero proceeds. Company uses the straight-line depreciation method. No depreciation was recorded for year 2021. a) Refer to item 1 & 2 in the question. Discuss how dividends declared in the year will affect Common shares and Retained Earnings balances as at Dec 31, 2021. What will be the outstanding number of common shares as at Dec 31, 2021