Kayla Bites Ltd. began operations on January 1, 2020. During the year, the following transactions affected shareholders' equity 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. 2. 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. 9. 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. 8. 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 journal 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