Q5. Hair Force One (HFO) is publicly traded company that manufactures medicine that treats loss of hair and thus, HFO follows IFRS. Information about its shareholders' equity is as follows: Hair Force One Shareholders" Equity December 31, Year 9 Note 1: On December 31, Year 9, dividends on preferred shares were one year in arrears. Several transactions affecting shareholders' equity took place during the fiscal year ended December 31, Year 10, and are summarized in chronological order as follows. 1. On March 1, the company issued 10,000 common shares as a result of the conversion of convertible bonds at the option of bondholders. On the transaction date, the carrying value of the bonds was $97,000 and the carrying value of the conversion option was $1,000. HFO's shares were actively trading at $10 per share. 2. On June 1, the company exchanged 10,000 common shares for a special equipment. The equipment was valued at $120,000 by an independent appraiser. On the transaction date, HFO's shares were actively trading at $12 per share. 3. On September 1, the company purchased and retired 14,000 common shares at $14 per share. (1) Prepare the journal entry related to September 1 transaction. (2) Total dividends of $100,000 were declared on December 15, Year 10. Determine the dividends amount to be allocated to the shareholders of preferred shares