Question 2: Shareholder's Equity (12 Marks) 2 Gerry corporation is a mid-sized public company that had been in operation for many years on December 31, 2019, it had an unlimited number of common shares authorized and 2.2 million shares wed with dole i OSAN. well, there were 5 million preferred shares authorized with 250,000 of them wed with a dollar value of 57.000.000 The balance in retained earnings was $23,236,435. The preferred shares pay an annual dividend of 53 per share 3 4 During 2020, the following transactions affected shareholders' equity: 5 January 3- 100,000 new common shares were issued at $14 per share. 5 January 6- 12,000 new preferred shares were issued at $30 per share. April 12- The board of directors declared $0.60 dividend for all common shareholders the total amount was $1,380,000, January 3- 100,000 new common shares were issued at $14 per share, January 6-12,000 new preferred shares were issued at $30 per share. April 12- The board of directors declared $0.60 dividend for all common shareholders the total amount was $1,380,000 2 Required: 1. Prepare the required journal entries Date Account Titles Debit Credit January 3, 2020 January 6, 2020 April 12, 2020 mor Sheet Question 1 Depreciation Question 2 Shareholders Equity Question 3 Ratio Analy= 2. Complete the statement of changes in shareholder's equity, Gerry Corporation earned $6,250,435 in net income in 2020 Gerry Corporation Statement of Changes in Shareholder's Equity Year Ended December 31, 2020 Number of preferred Preferred Common Shares shares Shares Number of common shares Retained Earnings Total 250,000 $ 7,000,000 S 23,236,435 556,636,435 January 1, 2020 2,200,000 $ 26,400,000 Add: Net Income Add: Shares Issued Less: Dividends Declared December 31, 2020