As of January 1, 2021, the equity section of Superstore Foods Ltd. (SFL) balance sheet contained the following: (12 marks)

Common stock, 10 million authorized, 2 million issued and $4,400,000

outstanding

Contributed surplusfrom repurchase and cancellation of 30,000

common shares

Preferred stock, $3.50 cumulative dividend, 2 million authorized, 570,000

50,000 issued and outstanding

Retained earnings 3,500,000

Total shareholders' equity $8,500,000

On Feb 1, 2021, SFL sold 100,000 common shares for $600,000 cash.

On May 1, 2021, the company spent $520,000 to repurchase 200,000 common shares. These shares were cancelled immediately.

On July 1, 2021, the company repurchased and cancelled 3,000 preferred shares at $10/sh.

On Dec 31, 2021, SFL declared cash dividends of $200,000. The company used separate payable accounts for each of its shares. Dividends will be paid on Jan 1, 2022.

Required:

Record the journal entries for the above transactions occurring in 2021.