Question 1: Constitution Corp. has the following capital structure at the beginning of this year: Preferred shares, $ 3, no par value, cumulative, 20,000 shares authorized, 6,000 shares issued and outstanding.. Common shares, no par value, 60,000 shares authorized, 40,000 shares issued and outstanding. Total contributed capital........ Retained earnings........ Total shareholders' equity. Instructions $300,000 510,000 810,000 340,000 $1,150,000 a) Record the following transactions which occurred consecutively this year. Show all calculations. i. There are no dividends in arrears. A total cash dividend of $ 90,000 was declared. The preferred shares are participating to a maximum of 10%. Record dividends payable to common and preferred shares in separate accounts. ii. A 10% common stock dividend was declared. The current market value of the common shares is $ 16 a share. iii. Net income for the year was $ 180,000. Record the closing entry. b) Incorporating all the above information, construct the statement of shareholders' equity for Constitution Corp.