Question #1 (33 marks) ACME Ltd. can issue 100,000 $5 cumulative preferred shares. The company's letters patent authorizes up to 200,000 common shares, and has 51,500 common shares outstanding worth $362,500. Presently, no preferred shares are issued. Currently, the opening retained earnings equals $282,000. The following transactions occurred during 2020: Jan. 12 Feb. 21 Mar. 23 Apr. 26 May 21 Jun. 3 Aug. 23 Sep. 4 Dec. 31 ACME Ltd. issued 3,800 common shares in exchange for land valued at $61,000. (2 marks) The board of directors delcared a 5% share dividend to shareholders of record on Mar. 10, to be distributed on Mar. 23. The shares trade for $4 a share. Issued the share dividend. Sold and issued 11,000 preferred shares for cash at $25 per share. The board declared total cash dividends of $69,000 to shareholders of record on May 21, payable on Jun. 3. Paid the cash dividend. The board decided to split the common shares 5 to 1 effective Sep. 4. Share split (5 to 1) executed. ACME Ltd. earned a net income of $261,000 for the year. Close out the income summary account and any other temporary equity accounts. REQUIRED: 1) What are the journal entries needed to record the transactions from above? (23 marks) 2) Prepare a statement of changes in equity for the year ended 2020. (6 marks) 3) Prepare the equity section as it would be presented in the balance sheet as at December 31, 2020. (4 marks)