Page 8 of 9 Question 5 Onion Furniture Inc. ("Onion") is a listed company on the New York Stock Exchange. It is one of the largest furniture manufacturers and wholesalers in Country X. The following selected accounts appear in the Onion's ledger on April 1, 2020, the beginning of the current fiscal year: Share Capital - Ordinary, $10 par (2,000,000 shares authorized, US$ $12,500,000 1,250,000 shared issued) Share Premium-Ordinary 4,000,000 Share Capital Preference, 1%, $40 par (75,000 shares authorized, 45,000 shares issued) 1,800,000 Share Premium - Preference Retained Earnings 75.000 3,000,000 During the year, the corporation completed a number of transactions affecting the equity. They are summarized as follows: 1. Issued 350,000 shares of ordinary share at $20, receiving cash. 2. Issued 15,000 shares of preference share, 1% at $45, receiving cash. 3. Purchased 65,000 shares of treasury share for $18 per share. 4. Sold 50,000 shares of treasury share for $21 per share. 5. Declared cash dividend $0.50 per share on preference share and $0.02 per share on ordinary share. 6. Paid the cash dividend. Required: (a) Compare the difference between ordinary share and preference share. (12 marks) (b) Journalize the entries to record the transactions (ignore narrations). (15 marks) (c) Assume Onion's net profit during the current fiscal year was USS 1,200,000, prepare the Onion's Retained Earnings Statement for the year ended March 31, 2021. (6 marks) *** END OF PAPER *** Page 9 of 9