Prepare Journal entry

On December 31,2022 , LBE issued 10,000 redeemable and retractable preferred shares at $50 per share, for tax planning purposes. The shares are redeemable and retractable at any date up to December 31, 2027, at which point the redeemable and retractable features expires. The preferred shares pay a mandatory dividend of $10 per share per year until the end of the redeemable and retractable period, after which the dividends are not cumulative and not mandatory. David recorded these shares as equity, and the first dividend payment on December 31,2022 , was recorded through equity