Question 1 Foress Corporation, a publicly traded company, was organized on January 1, 2018. It is authorized to issue an unlimited number of $3 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: Jan. 10 Mar. 1 May 1 June 1 July 24 Issued 900,000 common shares for $2 per share, Issued 20,000 preferred shares for $50 per share. Issued 225,000 common shares for $3 per share. Reacquired and retired 11,000 common shares at $2 per share. Determine the average cost of each reacquired share to the nearest cent before recording this transaction Issued 36,700 common shares for $127,000 cash and used equipment. The equipment originally cost $31,000. It now has a carrying amount of $15,500 and a current value of $ 16,500. The common shares were trading for $4 per share on this date. Issued 10,000 common shares for $5 per share Issued 4,300 preferred shares for $50 per share. Reacquired and retired 17,000 common shares at $4 per share. Determine the average cost of each reacquired share to the nearest cent before recording this transaction Declared a $70,000 cash dividend to the preferred shareholders, to shareholders of record on December 31, payable on January 10 Reported net income of $1,190,000 for the year. Sept. 4 Nov. 1 20 Dec. 14 31 (a) Record the above transactions for 2018, including any required entries to close dividends declared and net income. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round average cost per share to 2 decimal palces, e.g. 2.25 and final answers to O decimal places.) Transaction entries: Date Account Titles and Explanation Debit Credit Jan. 10 Cash 1,800,000 Common Shares 1.800.000 Mar. 1 - Cash 1,000,000 May 1 # Cash 675,000 Common Shares 675,000 June 1 # Common Shares Cash 22,000 Contributed Surplus July 24 Cash 127,000 Equipment 16,500 Common Shares 143,500 Sept. 4 4 Cash 50,000 Common Shares 50,000 Nov. 1 Cash 215,000 Common Shares 215,000 Nov. 20 Common Shares Contributed Surplus Retained Earnings Cash 68,000 Dec. 14 4 Cash Dividends 70,000 70,000 Dec. 14 Cash Dividends Preferred Shares 70,000 Closing entries: Date Account Titles and Explanation Debit Credit Dec. 31 Retained Earnings 70,000 Cash Dividends 70,000 (To close cash dividends) Dec. 31 Income Summary 1,190,000 Retained Earnings 1,190,000 (To close profit)