Assignment on EQUITY Question 1 Use information provided below to answer the questions that follow Lee Corporation is authorized by its article to issue 100000 shares of $10 preferred shares and an unlimited number of common shares. The table below shows the transactions that occurred during the first two years of the company's operations: Year 2017 Jan 2 Feb 15 Issued 5000 common shares at $5 per share Paid the promoters $ 4500 in kind [ 1100 common shares) Issued 8000 common shares in exchange for a equipment valued at $52000 and land selling at $70000 but valued at $60000 April 30 May 31 Paid $1250 for transporting equipment to the organization August 31 Sold 2000 preferred shares for cash $70 per share. Sept 10 Board of directors declared cash dividend of $ 1.40 to common shareholders and the dividend for preferred shares Dec 31 Paid the dividend both to common shareholder and preferred shareholders December 31 Closed the account with $52000 on debit balance in the income summary To the Retained earnings REQUIRED (A) Journalize the transactions (B) Calculate the total equity of the company. Remember equity means THE BALANCE OF LAST YEAR Retained earnings + all the preferred shares + the common shares issued - the dividend paid Use the format given during class Question 2 XYZ Corporation provided the following information on Dec 31, 2018 $25700 $2.20 per share $60000 Retained Earning Jan 1 2018 Dividend paid on 24000 common shares Preferred Shares $2, 10000 authorized , 3000 issued and outstanding Paid dividend for year 2018 Net income Common shares: unlimited authorized; 120000 shares outstanding Preferred share dividend (2x 3000] $64,300 $1,200,000 $6000 Required 1. Calculate the Retained Earning on December 31, 2018 using a T-Acount 2. Give an extract of the equity portion of the Balance sheet for Dec 31, 2018