Question 1 [50 points] Tracy Regis incorporated Northstar Corp. on May 1, 2014. They are authorized to issue an unlimited number of common shares and 10,000, $4.00 non-cumulative preferred shares. During May, the following equity transactions occurred: a. Issued 8,000 common shares at $3.90 per share for cash b. Issued 5,000 preferred shares at $13.30 per share for cash. c. Northstar Corp. reported net income for the month of $63,000, and declared total cash dividends of $28,000 to shareholders of May 31, 2014 payable June 15, 2014. a) Using the information provided above and the following May 31, 2014 selected adjusted account balances prepare the statement of changes in equity for the month ended May 31, 2014 along with the May 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 Receivable 44,000 Statement of Changes in Equity Accumulated Depreciation, Furniture 3,500 (select one) Accumulated Depreciation, Machinery. 1,500 Common Preferred Retained Total Bonds Payable (due September, 2023). 33,000 Shares Shares Earnings Equity Cash 68,000 Furniture 97,000 Interest Payable 21,000 XE Interest Receivable 9,000 Land 38,000 (select one) Long-Term Notes Payable. 45,000 Balance Sheet Machinery 44,000 (select one) Property Taxes Payable. 49,000 Supplies 13,700 b) Use your above answer to answer each of the following questions: What percentage of the total assets are equity financed? What percentage of Northstar Corp. 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