As of January 1, 2019, the equity section of RS Nursery Co.'s balance sheet contained the following: (Click the icon to view the equity section.) On May 1, 2019, the company spent $685,000 to repurchase 200,000 common shares. These shares were cancelled immediately. On July 15, 2019, the company repurchased and cancelled 4,000 preferred shares at $14/share. On November 1, 2019, the company declared and paid the annual cash dividends on the preferred shares. On the same day, the company issued a 20% stock dividend on common shares. RS Nursery's stock traded at $9/share after the dividend. Requirement Assume that RS Nursery follows the guidance in ASPE pertaining to accounting for equity transactions. Record the journal entries for the above transactions occurring in 2019. May 1, 2019: The company spent $685,000 to repurchase 200,000 common shares. These shares were cancelled immediately. (Record debits first, then credits. Explanations are not required. Prepare the journal entries under the guidance of ASPE.) Accounts Debit Credit Date May 1, 2019 - X Data Table Cash S 3,000,000 Common shares 275,000 Contributed surplus - expired options on common shares Common shares, 11,000,000 authorized, 2,000,000 issued and , outstanding Contributed surplus-from repurchase and cancellation of common shares Contributed surplus-expired options on common shares Preferred shares, $4 cumulative dividend, 4,000,000 authorized, 30,000 issued and outstanding Retained earnings Total shareholders' equity Contributed surplus - from repurchase and cancellation of shares 400,000 480,000 Gain from repurchase of shares 3,500,000 Loss from repurchase of shares S 7.655,000 Preferred shares Retained earnings Print Print Done Treasury stock