Ka-Pow Corporation's charter authorizes the issuance of 1 million common shares and 500,000 cumulative, participating preferred shares that have a dividend rate of $6 per share per year.

Ka-Pows limited ledger shows the following balances on December 31, 2019:

Preferred shares outstanding, 10,000 shares $1,200,000 Common shares outstanding, 20,000 shares 300,000 Retained earnings 2,000,000

The following transactions involving share issues were completed in 2020. Assume that Ka-Pow follows IFRS.

Jan 1: The board of directors declared a $163,000 dividend on both the 20,000 shares of outstanding common and the 10,000 shares of outstanding preferred.

Feb 1: The dividend was paid. Mar 1: Issued 4,000 common shares for machinery. The machinery had been appraised at a fair value of $72,000, and the seller's carrying amount was $58,600. The common shares' most recent market price is $18.50 a share.

Jun 1: Purchased 6,000 of its own outstanding common shares for $20 each and cancelled them.

Dec 15:Declared a 2-for-1 stock split on the outstanding common shares. The market price of the common shares was $24 at the time of the split.

Dec 31: The company reported/declared/calculated net income of $500,000 and comprehensive income of $530,000.

Instructions:

1. Prepare the journal entries to record the transactions from January 1 through to and including December 15. If no entry is needed for a particular date, write n/a.

2. On December 31, 2020,

a) What is the total number of common shares outstanding?

b) What is the total number of common shares authorized?

c) What is the balance in retained earnings at December 31, 2020?