On January 1, 2020, Ayayai Ltd. (a public company) had the following shareholders' equity accounts: Preferred shares, $4 non-cumulative, unlimited number authorized, none issued 0 Common shares, unlimited number authorized, 700,000 issued $ 3,500,000 Retained earnings 1,100,000 Accumulated other comprehensive income 130,000 The following selected transactions occurred during 2020: Jan. 2 Issued 80,000 preferred shares at $100 per share. Mar. 5 Declared the quarterly cash dividend to preferred shareholders of record on March 20, payable April 1. Apr. 18 Issued 100,000 common shares at $8 per share. June 5 Declared the quarterly cash dividend to preferred shareholders of record on June 20, payable July 1. Sept. 5 Declared the quarterly cash dividend to preferred shareholders of record on September 20, payable October 1. Dec. 5 Declared the quarterly cash dividend to preferred shareholders of record on December 20, payable January 1. Dec. 31 Net income for the year was $350,000.Prepare the financing activities section of the statement of cash flows for the year ended December 31. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis eg. (15,000).) Ayayai Ltd. Cash Flow Statement (Partial) Financing activities: Cash financing activitiesPrepare journal entries to record the transactions above, as well as the closing entries for Income Summary and Dividends. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit n. 2 Cash 30000 Preferred Shares 30000 er. 5 Cash 80000 Dividends Payable 80000 or. 1 Dividends Payable 80000 Cash 80000 or. 18 Cash Common Shares 80000 he 5 Cash 80000 Dividends Payable 80000 ly 1 Dividends Payable 80000 Cash 80000 pt. 5 80000 80000 it1 Dividends Payable 80000 Cash BOO00pt. 5 80000 80000 t. 1 Dividends Payable 80000 Cash 80000 ec 5 Cash 80000 Dividends Payable 80000 ec. 31 Cash 80000 Dividends Payable 80000 (To close income summary account) ec 31 V Dividends Payable 80000 Cash 80000 (To close dividends account)Enter beginning balances and post the entries to the shareholders' equity and dividends T accounts and arrive at the ending balances. (Post entries in the order of journal entries presented in the previous port.) Preferred Shares Common Shares Retained Earnings Accumulated Other Comprehensive IncomeDividends Mar. 5 June 5 Sept. 5 Dec 5Prepare the statement of changes in shareholders' equity for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Ayayai Ltd. Statement of Changes in Shareholders' Equity Preferred Shares Common Shares Number of Shares Share Capital Number of Shares Balance Jan, 1, 2020 Issued preferred shares Issued common shares Declared dividends Net earnings Balance, December 31, 2020Common Shares Accumulated Other Number of Shares Share Capital Retained Earnings Comprehensive Income SPrepare the shareholders' equity section of the SFP at December 31. Ayayai Ltd. Statement of Financial Position (Partial)The following is the shareholders' equity section of Blue Spruce Corp. at December 31, 2020: Preferred shares," authorized 120,000 shares; issued 38,000 shares $ 1,140,000 Common shares (unlimited authorized, 56,000 issued) 1,400,000 Contributed surplus 107,000 Total paid-in capital 2,647,000 Retained earnings 2,107,800 Total shareholders' equity $ 4,754,800 The preferred shares have a $2 dividend rate, are cumulative, and participate in distributions in excess of a $3 dividend on the common shares.No dividends were paid in 2018 or 2019. On December 31, 2020, Blue Spruce wants to pay a cash dividend of $5 per share to common shareholders. How much cash would be needed for the total amount to be paid to preferred and common shareholders? (Round excess return percentage to 4 decimal places, e.g. 52.7531% and final answer to 0 decimal places, e.g. 5,275.) Preferred Common Total t to be paid to shareholders 304000 280000 584000The company decides instead that it will declare a 15% stock dividend on the outstanding common shares at their fair value. The common shares' fair value on the date of declaration is $45 per share. Prepare the entry on the date of declaration. (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 Retained Earnings 378000 Common Stock Dividends Distributable 210000The company decides instead to acquire and cancel 10,300 common shares at the current fair value of $45 per share. Prepare the entry to record the retirement, assuming the contributed surplus balance arose from previous cancellations of common shares. (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 0 for the amounts.) Account Titles and Explanation Debit Credit Common Shares 257500 463500 Cash 463500Martinez Corp. reported the foilowing amounts in the shareholders' equity section of its December 31, 2019 SFP: Preferred shares1 $9 dividend [12.000 shares authorizedI 2,500 shares issued} $2 60000 Common shares {unlimited authorized. 30,000 issued} 220.000 Contributed surplus F8300 Retained earnings 300,000 Accumulated other comprehensive income 83,000 Total $1,441,?00 During 2020I the corn pa n1; had the foilowingtransactions that affect share hoiders' equity. 1. Paid the annual 2019 $9 per share dividend on preferred shares and a $4 per share dividend on comm on shares. These dividends had been declared on December 3 1, 2019. 2. Purchased 3,200 shares of its own outstanding common shares for $40 per share and cancelled them. 3. issued 1.000 shares of preferred shares at $1 10 per share {at the beginning of the year]. 4' Deciared a 15% stock dividend on the outstanding common shares at their fair value when the shares were seiling for $40 per share. 5. issued the stock dividend. 6. Deciared the annual 2020 $9 per share dividend on preferred shares and a $3 per share dividend on common sha res. These dividends are payable in 2021. The contributed su rpius 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 we re $2,616,000. The corn panv 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 0 for the amounts.) Account Titles and Explanation Debit Credit Dividends Payable 22500 Cash 142500 2. Common Shares 88800 Contributed Surplus 59200 Cash 148000 3 Cash 110000 Preferred Shares 110000 Dividends 157800 Common Stock Dividends Distributable 157800 5 Common Stock Dividends Distributable 157800 Common Shares 157800 Dividends 122235 Dividends Payable -90735Assuming that the directors decide to declare total dividends in the amount of $433,360, determine how much each class of shares should receive if the preferred shares are cumulative and fully participating. Note that one year's dividends are in arrears on the preferred shares, which pay a dividend of $1.20 per share. (Round intermediate percentage calculations to 4 decimal places, eg. 12.2525% and final answers to O decimal places, e.g. 5,275.) Preferred Common Total Dividend S 48000 385360 S 433360Assuming that the directors decide to declare total dividends in the amount of $433,360, determine how much each class of shares should receive if the preferred shares are non-cumulative and non-participating. Note that one year's dividends are in arrears on the preferred shares, which pay a dividend of $1.20 per share. (Round answers to 0 decimal places, e.g. 5,275.) Preferred Common Total Dividend 24000 S 409360 433360Assuming that the directors decide to declare total dividends in the amount of $433,360, determine how much each class of shares should receive if the preferred shares are non-cumulative and are participating in distributions in excess of a 10% dividend rate on the common shares. Note that one year's dividends are in arrears on the preferred shares, which pay a dividend of $1.20 per share. (Round intermediate percentage calculations to 4 decimal places, e.g. 12.2525% and final answers to O decimal places, e.g. 5,275.) Preferred Common Total Dividend S 92560 340800 S 433360Martinez Limited's ledger shows the following balances on December 31, 2020: Preferred shares outstanding: 20,000 shares 400,000 Common shares outstanding: 48,000 shares 3,408,000 Retained earnings 866,720