e. Bought and cancelled 1,000 shares at $50 per share. P15.6 Stellar Corp. had the following shareholders' equity on January 1, 2020: Common shares, unlimited number authorized, 100,000 shares issued and outstanding Contributed surplus Retained earnings Total shareholders' equity The contributed surplus arose from net excess of proceeds over cost on a previous cancellation of com mon shares. Stellar prepares financial statements in accordance with ASPE. The following transactions occurred, in the order given, during 2020. 1. Subscriptions were sold for 12,000 common shares at $26 per share. The first payment was for $10 per share. "This item was originally published by Certified General Accountants Association of Canada (CGA Canada) as an examination question. Adapted with permission of the Chartered Professional Accountants of Canada, Toronto, Canada. Any changes to the original material are the sole responsibility of the publisher and have not been reviewed or endorsed by the Chartered Professional Accountants of Canada. 2. The second payment for the sale in item 1 above was for $16 per share. All payments were received on the second payment except for 2,000 shares. Instructions 3. In accordance with the subscription contract, which requires that defaulting subscribers have all their payments refunded, refund cheques were sent to the defaulting subscribers. At this point, com- mon shares were issued to subscribers who had fully paid on the contract. 4. Repurchased 22,000 common shares at $29 per share. They were then retired. Round to two decimal places when calculating average price per share. 5. Sold 5,000 preferred shares and 3,000 common shares together for $300,000. The common shares had a fair value of $31 per share. $ 270,000 310,000 2,300,000 $2,880,000 the foumal entries to record the transactions for the company for 2020. Problems