O Underdog Corporation had the following transactions take place during the fiscal year: a. The company is authorized to issue 150,000 preferred shares and an unlimited number of common shares. b. The founders of the corporation are issued 10,000 common shares in exchange for land valued by the board of directors at $210,000 1 (based on an independent valuation). 2 c. Sold 15,200 preferred shares for cash at $110 per share. 3 d. Repurchased and cancelled 3,000 outstanding preferred shares for cash at $100 per share. 4 e. Paid $85,000 in dividends that were declared in the previous period. 5 f. Repurchased for cash and cancelled 500 of the outstanding common shares issued in Transaction B above at $49 per share. 6 g. Issued 2,000 preferred shares at $99 per share. 7 8 REQUIRED: 9 1. Prepare all required journal entries to record the transactions listed above. No other transactions affecting the capital share accounts 0 have occurred. (16 Marks) 2. Assuming that the company has retained earnings from operations of $1,032,000, prepare the shareholders' equity section of its 1 Statement of Financial Position after considering all the transactions above. (10 Marks) 2 3 Be sure to show your work and any required supporting calculations! 4