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32 Marks Question 1 As ofJanuary 1, 2021, the equity section of LD Food Co.'s balance sheet contained the following: (12 marks] Common stock, 10 million authorized, 2 million issued and $3,000,000 outstanding Contributed surplusifrom repurchase and cancellation of 525,000 common shares Preferred stock, 54 cumulative dividend, 7 million authorized, 570,000 30,000 issued and outstanding Retained earnings 2 500,000 Total shareholders' equity $6,595,000 I On May 1, 2021, the company spent $802,500 to repurchase 300,000 common shares. These shares were cancelled immediately. - On July 15, 2021, the company repurchased and cancelled 4,000 preferred shares at SlS/sh. I On November 1, 2021, the company declared and paid the annual cash dividends on the preferred shares. On the same day, the company issued a 5% stock dividend on common shares. [0 Food's stock traded at S7fshare after the dividend. Required: Record the journal entries for the above transactions occurring in 2021