Question 1 [50 points]

John Jarell incorporated Star Inc. on January 1, 2014. They are authorized to issue an unlimited number of common shares and 20,000, $2.00 non-cumulative preferred shares. During January, the following equity transactions occurred

Question 1 (50 points] John Jarell incorporated Star Inc. on January 1, 2014. They are authorized to issue an unlimited number of common shares and 20,000, $2.00 non-cumulative preferred shares. During January, the following equity transactions occurred: a. Issued 14,000 common shares at $4.10 per share for cash. b. Issued 8,000 preferred shares at $9.40 per share for cash. c. Star Inc. reported net income for the month of $73,000, and declared total cash dividends of $30,000 to shareholders of January 31, 2014 payable February 15, 2014. a) Using the information provided above and the following January 31, 2014 selected adjusted account balances prepare the statement of changes in equity for the month ended January 31, 2014 along with the January 31, 2014 classified balance sheet. The list of accounts is incomplete; you will have to add several accounts based on the information provided above. Account Balance (select one) Accounts Payable 24,000 Statement of Changes in Equity Accumulated Depreciation, Building.. 2,500 (select one) Accumulated Depreciation, Furniture 1,500 Common Preferred Retained Total Bonds Payable (due February, 2019) 23,000 Shares Shares Earnings Equity Building 42,000 Cash 106,000 Furniture 52,000 Interest Payable 8,000 Interest Receivable 7,000 (select one) Land 59,000 Balance Sheet Long-Term Notes Payable. 27,000 Long-term Investment in Shares (select one) 22,600 Rent Receivable 40,000 Salaries Payable 40,000 Supplies 3,000 b) Use your above answer to answer each of the following questions: What percentage of the total assets are equity financed? What percentage of Star Inc. is financed by debt? The common shareholders own what percentage of the total assets? What percentage of the assets are financed by the preferred shareholders