Problem #2 The shareholders equity section of Alumni Inc. is shown below: Statement of Financial Position (partial)December 31, 2021Shareholders Equity Share Capital$2 noncumulative Preferred Shares, 50,000 shares authorized,10,000 shares issued......................................................$ 650,000Common shares, unlimited number authorized, 500,000 issued2,100,000Total Share Capital..........................................................2,750,000Retained earnings.........................................................................975,000Total ShareholdersEquity.....................................................$3,725,000 During 2022 Alumni had the following transactions: 1. Jan 10 Declared a $2cash dividend to preferred shareholders, payable February 10.2.Jul 1 Split the common shares 2-for-1. The market price per share was $4.75.3.Oct 15 Declared a 10% stock dividend to common shareholders of record at November 5 to be distributed November 22. The share price on declaration was $2.50 per share and $2.25 on the distribution date.4. Dec 31 Net Income of $575,000. Instructions (a)Prepare the appropriate journal entries.(12 marks) (b)i) What is the value of the preferred shares on December 31, 2022?(1 mark) ii) What is the value of the legal capital related to the Common Shareson December 31, 2022?(2 marks) iii) What is the balance in the retained earnings account on December 31, 2022?(3 marks) iv) How many common shares were issued at December 31, 2022?(2marks)