Apr. 14 P14.4B (LO 1, 2) AP The following shareholders' equity accounts are reported by Talty Inc. on January 1: Common shares (unlimited authorized, 500,000 issued) $4,000,000 Preferred shares ($9 noncumulative, convertible, 100,000 authorized, 4,000 issued) 600,000 Contributed surplus-reacquisition of common shares 2,000 Retained earnings 1,958,000 The following selected transactions occurred during the year: Jan. 17 Issued 50,000 common shares at $10 per share. Feb. 27 Reacquired 20,000 common shares at $12 per share. Split the common shares 2 for 1 when the common shares were trading at $20 per share. June 25 Reacquired 500 preferred shares at $145 per share, Aug, 16 Reacquired 100,000 common shares for $11 per share, Oct. 17 Declared a 5% common stock dividend distributable on December 3 to shareholders of record on November 14. On October 17, the fair value of the common shares was $10. Dec. 3 Distributed the stock dividend declared on October 17. On December 3, the fair value of the common shares was $12.50. Instructions a. Prepare journal entries for the transactions. b. Show how each class of shares will be presented in the shareholders' equity section of the balance sheet at December 31