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Red Deer Hardware Ltd. had the following shareholders' equity on January 1, 2017: prefefI'Ed shares, $0.50 cumulative, convertible to common on a 2-for-1 basis, 50,000 shares authorized, 20,000 shares issued and outstanding $ 55,000 Common shares, unlimited number of shares authorized, 50,000 shares issued and outstanding 62,500 Total contributed capital 117,500 Retained earnings 110,000 Total shareholders' equity $227,500 shareholder. Apr. 1 Paid the cash dividend declared on March 7. Jun. 6 Declared a 5 percent stock dividend on the common shares, distributable on August 5 to the shareholders of record on July 4. The market value of the shares was $1.50 per share. Aug. 5 Distributed the common shares dividend declared on June 6. Sep- 15 Received notification from the Canada Revenue Agency that Red Deer Hardware Ltd. had made an error in ling its 2014 taxes. The reassessment showed that the company had reported and overpaid $4,000 in taxes. Dec. 31 Red Deer Hardware Ltd.'s records show the following: Sales for the year. ........................................................ $212,500 Cost of goods sold ....................................................... 95,000 Operating expenses .................................................... 65,000 Income from discontinued Operations .................... 4,000 Loss on sale of discontinued operations ................ (2,500) Close the Income Summary account, assuming the income tax on all'types of income is 40 percent. Required 1. Record the transactions in the general journal. Explanations are not required. 2. Prepare a combined multi-step statement of income and retained earnings for the year ended December 31, 2017. Include earnings per share information