Martinez Corp.reported the following amounts in the shareholders' equity section of its December 31, 2019 SFP: $260,000 Preferred shares, $9 dividend (12,000 shares authorized, 2,500 shares issued) Common shares (unlimited authorized, 30,000 issued) Contributed surplus 720,000 78,700 Retained earnings 300,000 Accumulated other comprehensive income 83,000 Total $1,441,700 During 2020, the company had the following transactions that affect shareholders' equity. 1. 2. Paid the annual 2019 $9 per share dividend on preferred shares and a $4 per share dividend on common shares. These dividends had been declared on December 31, 2019. Purchased 3,700 shares of its own outstanding common shares for $40 per share and cancelled them. Issued 1,000 shares of preferred shares at $110 per share at the beginning of the year). Declared a 15% stock dividend on the outstanding common shares at their fair value when the shares were selling for $40 per share. 3. 4. 5. Issued the stock dividend. 6. Declared the annual 2020 $9 per share dividend on preferred shares and a $3 per share dividend on common shares. These dividends are payable in 2021. The contributed surplus arose from net excess of proceeds over cost on a previous cancellation of common shares. Total assets at December 31, 2019, were $2,140,000, and total assets at December 31, 2020 were $2,616,000. The company follows IFRS. Prepare journal entries to record the transactions above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit 1. Dividends Payable Cash 2. Common Shares Contributed Surplus Cash 3. Cash Preferred Shares UTITITINIO ITINUTURE 4. Dividends Common Stock Dividends Distributable 5. Common Stock Dividends Distributable Common Shares 6. Dividends Dividends Payable Prepare the statement of changes in shareholders' equity for the year ended December 31, 2020. Assume 2020 net income was $450,000 and comprehensive income was $456,000. (Enter negative amounts using either a negative sign preceding the number eg, -45 or parentheses e.g. (45).) Martinez Corp. Statement of Changes in Shareholders' Equity For the Year Ended December 31, 2020 Preferred shares Common Shares Number of Shares Paid-in Number of shares Balance, January 1 $ Net income Other comprehensive income Comprehensive income Repurchase of common shares Issuance of preferred shares LIO DIIIII DJI DOLCOME II Issuance of common shares through stock dividend Cash dividend: - preferred - common Balance, December 31 $ Prepare the December 31, 2020 shareholders' equity section. Martinez Corp. Shareholders' Equity December 31, 2020 $ LO!!!!! $ Calculate the rate of return on common shareholders' equity and the rate of return on total assets for 2020. (Round percentage answers to 2 decimal places, e.g. 52.75%.) Rate of return on common shareholders' equity Rate of return on total assets %