Geller Limited, a public company reported the following amounts in the shareholders' equity section of the Balance Sheet on December 31, 2020: Preferred Shares, $8.00 cumulative and non-participating (2,000 shares issued and outstanding) $200,000 Common Shares (25,000 issued and outstanding) Contributed Surplus on retirement of common shares 100,000 Retained Earnings 155,000 Accumulated Other Comprehensive Income 250,000 75,000 a. January 1 Purchased and cancelled 3,700 common shares for $35.00/share. b. January 1 Issued 1,000 preferred shares at $105 per share. C. March 31 Declared a 10% stock dividend on the common shares. The trading price of the stock on that date was $45 per share. d. April 30 Issued the stock dividend. e. December 31 Declared a total dividend of $70,860 for the year. f. December 31 Options were granted to the CEO for 25,000 common shares at an exercise price of $48, the current market value. The vesting period is four years from the date of grant. An option pricing model (e.g. Black-Scholes) has determined that the fair value of the options is an aggregate of $72,000. These options were granted as a replacement for an annual honne man hasi L Hide a. January 1 - Purchased and cancelled 3,700 common shares for $35.00/share b. January 1 - Issued 1.000 preferred shares at $105 per share. c. March 31 - Declared a 10% stock dividend on the common shares. The trading price of the stock on that date was $45 per share. d. April 30 - Issued the stock dividend. e. December 31 - Declared a total dividend of $70,860 for the year. f. December 31 Options were granted to the CEO for 25,000 common shares at an exercise price of $48, the current market value. The vesting period is four years from the date of grant. An option pricing model (e.g. Black-Scholes) has determined that the fair value of the options is an aggregate of $72,000. These options were granted as a replacement for an annual bonus plan based on a percentage of net income. Required 1. Prepare journal entries to record the transactions that took place during 2021. 2. Prepare the shareholders' equity section of the balance sheet at December 31, 2021. Assume 2021 net income was $450,000 and comprehensive income was $475,000. 3. On January 2, 2026 the CEO exercised the stock options. Prepare the journal entry on the exercise date