Question 1 (20 mark) Part A (10 martes) Duval Corporation reports the following components of shareholders equity on December 31, 2020 Share capital-Ordinary, $10 per value. 1,000,000 shares authorized 250,000 shares sued and outding $2.500.000 Share premium Ordinary 1.260.000 Retained earnings... 1.675.000 Total shareholders' equity $5.435.000 Required: i. Prepare joumal entries to record the following selected transactions for 2020: (7 marks) Mar. 1 Purchased 10,000 of its own shares at $18 per share. May 5 Sold 4,000 of its treasury shares at $16 per share (Share premium - Treasury shares has a zero balance before this transaction.) Oct. 12 Sold 2,000 of its treasury shares at $19 per share. ii. Why do companies acquire their own shares? (3 marks) Part B (10 marks) On January 1, 2021, Metro Corporation issues 14%, four-year bonds with a par value of $500,000. nterest is to be paid semiannually on each June 30 and December 31. The bonds are sold at $531,043 -hen the market rate for this bond is 12%. (Round to the nearest dollar) quired: Prepare the journal entry to record the issuance of the bonds on January 1, 2021. (3 marks) Assume that Metro uses the effective interest method of amortization of any discount or premium on onds. Prepare the journal entry to record the first semiannual interest payment on June 30, 2021. int: Setting up an amortization table for the first two semiannual payments may help you answer question and the next question, but this is optional.) (3 marks) how the bonds would be reported on Metro's Statement of Financial Position on December 31, after the December 31 semiannual interest payment. (2 marks) ere the methods that a company may use to retire its bonds? Identify at least two methods. (2 marks)