Jim Hortons Coffee has two classes of shares outstanding: preferred ($5 dividend) and common. At December 31, 2019, the following accounts and balances were included in shareholders 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

The following transactions affected shareholders equity during 2020:

$ 3,000,000 10,000,000 200,000 17,000,000 5,500,000

Issued 30,000 preferred shares at $30 per share

Issued 40,000 common shares at $22 per share

Declared a 2-for-1 stock split (common shares)

Purchased and retired 26,000 common shares at $18 per share

Jan 1

Feb. 1

June 1

July 1

Dec. 31 Net income is $2,400,000

Dec 31 The preferred dividend is declared, and a common dividend of $0.60 per share is declared

Prepare the statement of changes in shareholders equity. [3 Marks]