On 1 January 20X5, BC Ventures Corp. reported the following in shareholders' equity: Preferred shares, no par value; $0.70, cumulative; authorized, unlimited shares; issued, 80,000 shares $386,00 Common shares, no par value; authorized, unlimited shares; issued, 80,000 shares 642,00 Contributed capital on retirement of common shares 14,00 Retained earnings AOCI for foreign exchange gains on foreign subsidiary 1,250,00 38,00 During 20X5, certain shares were reacquired. In accordance with the regulations in BC Ventures' incorporating legislation, all reacquired shares were retired. Transactions were as follows: 15 January Bought 7,000 preferred shares for $5.20 per share 12 February Bought 2,000 common shares for $11 per share 25 February Bought 4,000 preferred shares for $4.00 per share Bought 5,000 preferred shares for $6.00 per share 26 April 16 July Bought 8,000 common shares for $7.50 per share Other transactions during the year: 30 July 30 November Stock dividend on common shares, 5%, declared and distributed. The board of directors agreed to capitalize the dividend at the market value of $7.75 per share. The board of directors declared a dividend adequate to pay $1 per share to all common shareholders. This meant that the board also had to declare the preferred dividend. Page 979 Required: 1. Prepare journal entries to reflect the above transactions. Show the split between common and preferred dividends in the dividend entries, as appropriate. 2. Prepare the shareholders' equity section of the SFP after reflecting the above transactions. Earnings were $308,200, and total comprehensive income was $351,000, reflecting earnings plus an additional gain of $42,800 on foreign exchange caused by a foreign subsidiary