On November 1, 2016, BIUC issued 2,000 redeemable and retractable preferred shares at a value of $10 per share. The shares are redeemable by BIUC at any time after January 2021. The shares are retractable for the original $10 per share at the discretion of the holder at any time up to January 2021, after which the re tractable feature expires. The preferred shares require the payment of a mandatory $2 per share during the retraction period, after which the dividends become non-cumulative and are paid at the discretion of the board only.

what is the accounting treatment and journal entries required?