Intermediate accounting2

[8 marks] Q4: On January 1, 2020, Amman Corporation had the following equity accounts Equity Share capital- ordinary, $4 par value; authorized, 6,000,000 shares; Issued and outstanding, 2,000,000 shares $8,000,000 Share premium- ordinary 2,850,000 Retained earnings 8,000,000 $18,850,000 The following events occurred during 2020: 1. Jan. 5 120,000 shares of authorized and unissued ordinary shares were sold for $15 per share. 2. Jan. 16 Declared a cash dividend of $1.1 per share, payable February 15 to shareholders of record on February 5. 3. Feb. 10 90,000 of ordinary shares were sold for $12 per share. 4. March 1 A 30% share dividend was declared and issued. Market value per share is currently $30. 5. April 1 A two-for-one split was carried out. The par value of the share was to be reduced to $2 per share. Market value on March 31 was $28 per share. 6. July 1 A 10% share dividend was declared and issued. Market value is currently $25 per share. 7. Sept. 15 Manama Corporation has issued 10,000 ordinary shares and 8000preference shares for a lump sum of $450,000 cash, the market value at this date for both classes are $25 for the ordinary share and $60 for the preference share. 8. Nov, 1 The corporation purchased 8,000 of its shares (Treasury shares) at $30 per share. 9. Dec. 20 6000 shares of the treasury shares were sold at $45 each. Required: 10. Dec. 31 The remaining treasury shares were sold at $60 each. 1- Journalize the above transactions, [10 Marks] 2- Prepare the Shareholders equity section on Dec.31, 2020 [3 Marks] [13 Marks]