At December 31, 2018, the shareholders' equity section of the statement of financial position for Belfast Steel Ltd. totalled $30,000,000. Following are the balances of various general ledger accounts at that date. Preferred shares, $1.00, cumulative Issued 100,000 shares Common shares Issued 1,250,000 shares Retained earnings $ 1,000,000 25,000,000 4,000,000 The following transactions occurred during 2019: Feb 20 Mar 1 Apr 15 Jun 10 Aug 1 Dec 31 A cash dividend of $0.50 per preferred share was declared, payable Mar 1 to share- holders of record on Feb 25. Payment of previously declared dividend on preferred shares was made. A cash dividend on common shares of $0.60 per share was declared, payable Jun 10 to shareholders of record on May 1. Payment of the previously-declared dividend on common shares was made. 10,000 common shares were issued for $250,000 cash. A cash dividend totalling $425,000 was declared and paid. Required: a. Prepare journal entries for the 2019 transactions. Separate the dividends for preferred and common shares into the two classes of shares. b. Prepare the statement of changes in equity for the year ended December 31, 2019 assuming net income for the year amounted to $500,000.