Daisy Company, a public company, equity balances at December 31, 2019 as follows: Common shares, no par value, 200,000 shares authorized, 10,000 issued, 10,000 outstanding 350,000 Contributed surplus 3,500 Retained earnings 150,000 Total shareholders’ equity $503,500 Presented below is information related to Daisy’s capital transactions during 2020: January 10 Daisy repurchased 1,000 of its common shares for $40 each and retired them. February 1 10,000 common shares are issued in exchange for land with an appraised market value of $303,000. The shares were trading at $31 each 1 month ago. March 1 The directors declared a 10% stock dividend to common shareholders payable to shareholders of record. The shares were trading at $40 each on this date. March 10. Distributed the dividends declared March 1. 

The shares were trading at $42 each on this date. March 12 100 common shares and 3,000 preferred shares are sold for a lump sum amount of $303,800 cash. Common shares were trading at $38 per share on this date. Preferred shares, $2, cumulative, fully participating December 28 The directors declared a total cash dividend of $36,000 (5 marks – Must show all your work – i.e. allocation breakdown between common and preferred shareholders.) December 30 Daisy reacquired 1,000 of its common shares for $28,000 and retired them. (3.5 marks – Must show all your work.) 

Required: 

• Prepare the journal entries necessary to record these transactions above. Show the date for each journal entry. 

• Show ALL calculations and write out account names for full marks. 

• Round the calculations for the pro-rata and weighted average amounts to 4 decimal places and the final dollar value to the nearest dollar. 

• Use t-accounts to keep track of the $ and # of shares for both preferred and common shareholders.