Highaght Exercise 1 The following is the shareholders' equity part of Company ABC's balance sheet: Shareholders' Equity Contributed Capital Preferred shares, $0.50 cumulative, 100,000 shares authorized, $ 110,000 40,000 shares issued and outstanding Common shares, unlimited number of shares authorized, 125,000 100,000 shares issued and outstanding Total Contributed capital 235,000 Retained Earnings 220.000 Total Shareholders' Equity $227,500 The following are transactions that happened during the year 2020: Jan. 5: company declared cash dividends of $25,000, payable on Feb 1 to the shareholders of record on Jan 25. Indicate the amount payable to each class of shareholder (use 2 separate payable accounts), Feb 1: Paid the cash dividend declared on Jan 5. May 15: declared 5% stock dividend on common shares. The market value of the shares was $2 per share June 25. distributed the common shares dividend declared on May 15, Dec 31: close the net income of $55,000 to retained earnings Required: Record the transactions in the general joumal, Present the shareholders' equity section of the balance sheet as of December 31, 2020