Part IV. Problem. Shareholders' Equity (30 points)

Empresa Semana Santa presents the following information as of December 31, 2021-

Preferred stock, 2%, $20 par value 150,000 shares issued and outstanding $3,000,000

Common stock, $10 par value, 2,000,000 shares issued and outstanding. 20,000,000

Paid-in capital in excess of par value - preferred shares 200,000

Paid-in capital in excess of par value- common shares 28,000,000

Retained earnings 4,500,000

Common shares were issued at an average price of $24.

The following transactions occurred during 2022:

1. January 1- 60,000 preferred shares were issued at $200 each. The costs of issue incurred were $10,000.

2. June 1- A stock split of 2 to 1 was declared for the preferred shares.

3. July 1- 30,000 shares of common stock were repurchased at $10 each.

4. September 15- Re-issue 10,000 shares in portfolio at $12 each.

5. September 30- 5,000 treasury shares are reissued at $8 each.

6. October 10^th- 10,000 common shares are withdrawn from those in the running.

7. December 31- A 5% stock dividend is declared and distributed to the common shareholders only. The market value of the common stock at the time of the statement was $30 per share.

8. December 31- Cash dividend declared for preferred stock.

9. December 31- Net income for the year = $1,300,000. The other comprehensive income (other comprehensive income) for the year = $15,000.

REQUIRED: Prepare the Shareholders' Equity section as of DECEMBER 31, 2022. Use the "template" on the next page. You must show your computations for get full score. Use the lines and T-accounts below to do the math, identify the transaction you are making. With the number assigned to them