Problem 5 (14 marks) (25 minutes) The shareholders' equity section of the Kelly Corporation as at December 31, 20x4 was as follows: Preferred Shares, $5, cumulative, 100,000 shares issued $10,000,000 and outstanding 9,800,000 Common shares, 350,000 shares issued and outstanding Retained earnings 5,600,000 The following transactions occurred during the year ending December 31, 20x5: 1. March 31 - 30,000 common shares are issue for total cash proceeds of $1,080,000. 2. June 15 - 10,000 common shares are repurchased for a total of $380,000 3. June 30 - a common stock dividend of $1.00 per common share is declared and payable on July 15. 4. July 15 - the common stock dividend is paid 5. December 31 - a common stock dividend of $1.25 per common share is declared and payable on January 15. 6. December 31 - the preferred share dividend is declared and payable on January 15. Required - a. Write all of the journal entries to record the above transactions. b. Prepare a statement of changes in shareholders' equity for the year ended December 31, 20x5. Assume that the net income for the year was $2,900,000