Kayla Bites Ltd. began operations on January 1, 2020. During the year, the following transactions affected shareholders' equity: 2. 1. Kayla Bites' article of incorporation authorize the issuance of 1 million common shares, and the issuance of 100,000 preferred shares, which pay an annual dividend of $2 per share. A total of 120,000 common shares were issued for $5 a share. 3. A total of 7,500 preferred shares were issued for $14 per share. 4. The company had net income of $125,000 for the year. (Assume sales of $375,000 and total operating expenses of $250,000-prepare closing entries). 5 The company reacquired and canceled 20,000 common shares; the share price was 4$ 6. The dividend on the preferred shares was declared. 7. The company reacquired and canceled 5,000 common shares, the share price was $10. The dividend on the preferred shares was paid A dividend of $0.10 per share was declared on the common shares but was not yet paid. 10. The dividends on the common shares were paid 11. The company declared 10% stock dividends. The share price was $6. 12. The new common shares were issued. 13. The company declared a 2 for 1 stock split Required a Prepare joumal entries to record the above transactions, including the closing entries for net income and dividends declared, 12 marks b. Prepare the shareholder's equity section 10 marks 8. 9