EXERCISE 10-15 (L02,3) The partial balance sheet for the Carman Corp. reported the following components of equity on December 31, 2016: Carman Corp. Contributed capital: Equity Section of the Balance Sheet December 31, 2016 Preferred shares, $1.50 cumulative, 20,000 shares authorized; 10,000 shares issued and outstanding Common shares, unlimited shares authorized; 25,000 shares issued and outstanding. Total contributed capital Retained earnings Total equity $150,000 250,000 $400,000 250,000 $650,000 In 2017, Carman Corp. had the following transactions affecting the various equity accounts: Jan 4 Jan 8 Jan 31 July 1 Aug 7 424Equity Financing Sold 15,000 common shares at $11 per share. The directors declared a total cash dividend of $57,500 payable on Jan. 31 to the Jan. 21 shareholders of record. Dividends had not been declared for 2015 and 2016. All of the preferred shares had been issued during 2015. Paid the dividends declared on January 8. Sold preferred shares for a total of $77,500. The average issue price was $15.50 per share. The directors declared a $1.00 dividend per common share cash dividend payable on Aug. 31 to the Aug. 20 shareholders of record. Aug 31 Paid the dividends declared on Aug 7. Required: a. Prepare journal entries to record the transactions for 2017. b. Prepare a statement of changes in equity for the year ended December 31, 2017. For pur poses of preparing this statement, assume that the retained earnings balance at December 31, 2017 was $102,500. c. Prepare the equity section of the company's balance sheet as at December 31, 2017 in good form with all required disclosures and subtotals. d. Calculate the book value per preferred share and per common share as at December 31, 2016 and December 31, 2017. Bound final answer to nearest two decimal places