Analyzing Various Equity Transactions Monsieur Company began its operations on January 1. Authorized were 20,000 shares of $ 10 par value ordinary shares and 40,000 shares of 10%, $ 100 par value preference shares. The following transactions involving shareholders' equity occurred during the first year of operations: Jan 1 - Issued 500 ordinary shares to the corporation promoters in exchange for property valued at $170,000 and services valued at $ 70,000. The property had cost the promotion $ 90,000 3 years before and was carried on the promoter's books at $ 50,000. Feb 23 Issued $ 10,000 preference shares with a par value of $ 100 per share. The shares were issued at a price of $150 per share and the company paid $ 75,000 to an agent for selling the shares. Mar 10 - Sold 3,000 ordinary shares for $390 per share. Issue costs were $25,000. Apr 10-4,000 ordinary shares were sold under share subscriptions at $ 450 per share. No shares are issued until a subscription contract is paid in full. No cash was received. Jul 14 - Exchanged 700 ordinary shares and 1,400 preference shares for a building with a fair market value of $ 510,000. The building was originally purchased for $380,000 by the investors and has a book value of $220,000. In addition, 600 ordinary shares were sold for $ 240,000 in cash. Aug 3-Received payments in full for half of the share subscriptions and payments on account on the rest of the subscriptions. Total cash received was $1,400,000. Shares were issued for the subscriptions paid in full. Dec 1-Declared a cash dividend of $ 10 per share on preference shares, payable on December 31 to shareholders of record on December 15, and a $20 per share cash dividend on ordinary shares, payable January 5 of the following year to shareholders of record on December 15. Dec 31 - Paid the dividends to the preference shareholders. Net income for the first year of operations was $600,000. Based on the above data, calculate the balances of each of the following accounts: 1. Preference shares 2. Ordinary shares 3. Share premium 4. Cash Dividends 5. Retained Earnings Present all solutions in proper accounting form.