Instruction: You MUST show all necessary calculations for all the problems. Question 1: Jim Hortons Coffee has two classes of shares outstanding: preferred ($4 dividend) and common. At December 31, 2019, the following accounts and balances were included in shareholder's equity: Preferred shares, 300,000 shares issued (authorized, 1,000,000 shares) Common shares, 1,000,000 shares (authorized, unlimited) Contributed surplus - Preferred Contributed surplus - Common Retained Earnings $ 3,000,000 10,000,000 200,000 17,000,000 5,500,000 The following transactions affected shareholder's equity during 2020: Jan 1 Issued 30,000 preferred shares at $34 per share Feb. 1 Issued 40,000 common shares at $27 per share June 1 Declared a 2-for-1 stock split (common shares) July 1 Purchased and retired 26,000 common shares at $19 per share Dec. 31 Net income is $3,000,000 Dec 31 The preferred dividend is declared, and a common dividend of $0.70 per share is declared Prepare the statement of changes in shareholder's equity. [3 Marks) Question 2: Osprey Inc. had the following shareholder's equity on January 1, 2020 Common shares, 300,000 shares authorized, 100,000 shares issued and outstanding Contributed surplus Retained Earnings Total Shareholder's Equity $ 270,000 310,000 2,300.000 $2,880,000 The following transactions occurred, in the order given, during 2020. 1. Subscriptions were sold for 12,000 common shares at $32 per share. The first payment was for $16 per share. 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 2,500 shares. 3. In accordance with the subscription contract, which require that defaulting subscribers have all their payments refunded, a refund cheque was sent to the defaulting subscribers. At this point common shares were issued to subscribers who had fully paid on the contract. 4. Repurchased 22,000 common shares at $34 per share. They were then retired. 5. Sold 5,000 preferred shares and 3,000 common shares together for $302,000. The common shares had a market value of $36 per share. Prepare the journal entries to record the transactions for the company in 2020