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.

Instruction: You MUST Show all necessary calculations for all the problems Question 1: 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 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 $30 per share Feb. 1 Issued 40,000 common shares at $22 per share June 1 Declared a 2-for-1 stock split (common shares) July 1 Purchased and retired 26,000 common shares at $18 per share 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 shareholder's equity. [3 Marks)