Problem 10-4 XYZ Ltd. was incorporated on August 1st, 2010. Their maximum authorized share capital is: a) an unlimited number of no par value common shares b) 15,000 no par value preferred shares with a cumulative $5 dividend. Below is a list of XYZ Ltd's share transactions from their first year of operations: Aug. 1 Issued 75,000 common shares for $10 each. Sept. 15 Issued 5,000 preferred shares for a total of $250,000. Nov. 2 Feb. 27 28 Apr. 2 Jul. Issued an additional 45,000 common shares for $11.50 each. Issued 15,000 common shares in exchange for some equipment. The retail price of the equipment was $190,000 and the shares were trading for $12.15 on this date. The retail price of the equipment was also equal to the fair value of the equipment. Repurchased 25,000 common shares at $12 each. Issued 10,000 preferred shares for $48 each. 2 Issued 9,000 common shares for $15 each. 15 Declare dividends to preferred shareholders of record July 15, payable July 31st 15 Declare dividends of $0.75/share to common shareholders of record, July 15th, payable July 31st. 31 Reported net income of $789,000 for the year. Required - 1. Prepare the journal entries to record XYZ Ltd's share transactions for the year. 2. Prepare the shareholders' equity section of XYZ Ltd's Statement of Financial Position as at July 31st, 2011.