Fly by Night Business Incorporated, received a charter authorizing the issue of 200,000, $6, cumulative, and fully participating preferred shares and an unlimited number of common shares. The following shareholders' equity transactions occurred in 2022 and 2023: 2022 January 2 received subscriptions for 10,000 preferred shares @ $10 per share and collected 40% of the total proceeds. The balance will be collected one year from this date, at which time the shares will be issued. Jan 2 Sold 10,000 common shares at $5 per share. Apr 1 Sold 2,000 common shares and 1,000 preferred shares for a lump sum of $20,000. The common shares were trading at $6 per share and a market value for the preferred shares could not be reliably determined. Oct 1 Issued 1,000 common shares in exchange for equipment. The equipment had an appraised value of $10,000 and the common shares had been trading at $12 per share. Dec 31 The company reported a net income of $250,000 and the shareholders declared dividends of $100,000 payable to the preferred and common shareholders on or before Feb. 10, 2023. (Set up two separate liability accounts and remember to close the Income Summary account). 2023 Jan 2 Collected the balance due re: the preferred share subscriptions. Feb 10 Paid the dividends declared on Dec. 31, 2022. Mar 31 Purchased and retired 500 preferred shares for $9 per share. May 1 Purchased and retired 1,000 common shares for $8 per share. Jul 30 Purchased and retired and additional 500 preferred shares for $12 per share. Dec 31 Operations were not quite as successful in 2023 and the company incurred a net loss of $1,000. (Close the Income Summary account). Required: (1) Prepare the journal entries to record all the above transactions. Bonus 5 Marks Prepare the shareholders' equity section of the balance sheet as of Dec. 31, 2022. (I am looking for proper format. If the figures are incorrect, that is okay).

Fly by Night Business Incorporated, received a charter authorizing the issue of 200,000,$6, cumulative, and fully participating preferred shares and an unlimited number of common shares. The following shareholders' equity transactions occurred in 2022 and 2023: 2022 January 2 received subscriptions for 10,000 preferred shares @ $10 per share and collected 40% of the total proceeds. The balance will be collected one year from this date, at which time the shares will be issued. Jan 2 Sold 10,000 common shares at $5 per share. Apr 1 Sold 2,000 common shares and 1,000 preferred shares for a lump sum of $20,000. The common shares were trading at $6 per share and a market value for the preferred shares could not be reliably determined. Oct 1 Issued 1,000 common shares in exchange for equipment. The equipment had an appraised value of $10,000 and the common shares had been trading at $12 per share. Dec 31 The company reported a net income of $250,000 and the shareholders declared dividends of $100,000 payable to the preferred and common shareholders on or before Feb. 10, 2023. (Set up two separate liability accounts and remember to close the Income Summary account). 2023 Jan 2 Collected the balance due re: the preferred share subscriptions. Feb 10 Paid the dividends declared on Dec. 31, 2022. Mar 31 Purchased and retired 500 preferred shares for $9 per share. May 1 Purchased and retired 1,000 common shares for $8 per share. Jul 30 Purchased and retired and additional 500 preferred shares for $12 per share. Dec 31 Operations were not quite as successful in 2023 and the company incurred a net loss of $1,000. (Close the Income Summary account). Required: (1) Prepare the journal entries to record all the above transactions. Bonus 5 Marks Prepare the shareholders' equity section of the balance sheet as of Dec. 31, 2022. (I am looking for proper format. If the figures are incorrect, that is okay)