B (75%) - Compulsory Short Questions Answer ALL five questions in this section in the answer sheet. Each question carries 15 marks. Explanations of the journal entries are not required. Correct your answers to 2 decimal places if necessary. Show your workings. Question B1 Lizt Corporation was incorporated in January 2020 and was authorized to issue 1,125,000 ordinary shares of $20 par value and 100,000 preference shares of $125 par value. The preference shares pay a 6% cumulative dividend. The following events are occurred in Lizt Corporation in 2020: (1) In January 2020, the company had issued 600,000 ordinary shares for cash at $25 per share and 80,000 preference shares for cash at $130 per share. (2) In July 2020, the company repurchased 80,000 ordinary shares at a price of $30 per share. (3) In November 2020, the company reissued 50,000 treasury shares acquired in July at a price of $40 per share. (4) In December 2020, the board of directors declared a cash dividend of $2 per share to the ordinary shareholders, as well as satisfy all preference share dividend requirements. All dividends will be paid in next accounting year at 31 March 2021. Required: (a) Journalize the above transactions in 2020. (7 marks) (b) Prepare the shareholders' equity section of Lizt Corporation's statement of financial position at 31 December 2020. Lizt's profits after tax for 2020 was $8,000,000. (8 marks)