accounting question

Question 4 (17 marks) Almighty Corporation began operations on January 1, 2018. The classes and numbers of authorized shares under the corporation registration are: Ordinary Shares $8 par, 200,000 shares authorized Preference Shares $100 par, 10% cumulative, non-participating, 10,000 shares authorized. The following transactions relating to shareholders' equity occurred in the first two years of the company's operations. 2018: Jan 1 Jan 2 Issued 100,000 ordinary shares for $12 cash per share. Dec 31 Issued 3,000 preference shares for $100 cash per share. Net profit for the year ended Dec 31, 2018 amounted to $210,000. No dividend was declared nor paid in 2018. 2019: Jan 5 June 10 Issued 20,000 ordinary shares in exchange for machinery valued at $200,000. Aug 16 Purchased 10,000 of its own ordinary shares at $6 cash per share. Oct 28 Sold 6,000 of its treasury shares at $7 cash per share. Sold all remaining treasury shares at $4 cash per share. Required: 1) Prepare necessary journal entry to record each of the transactions occurred in 2019. If no journal entry is required, please write "no entry is required" in your answer. Ignore journal narrations. (12 marks) 2) Assume that the company declares $80,000 cash dividend on Dec 31, 2019. Compute the amounts of cash dividend allocated between the preference and ordinary shareholders and prepare a journal entry on Dec 31, 2019 to record the dividend declaration. (5 marks) Page 9 of 11