Question 3 (21 Marks)

On January 1, 2020, the accounts of Maleficent Moir Limited reflected the following:

Preferred shares, $1 non-cumulative

12,000 shares outstanding. $240,000

Contributed capital from preferred share transactions $ nil

Common shares, 360,000 shares outstanding. $738,000

Contributed capital from common share transactions 220,000

Retained earnings. 636,000

The following transactions occurred during 2020:

Feb 5 48,000 common shares bought and retired for $6 per share

Feb 26 6000 preferred shares bought and retired for $27 per share

May 5 16,000 common shares bought and retired for $1 per share

June 25 1200 preferred shares bought and retired for $24 per share

July 15 20,000 common shares were issued for $12.32 per share

Nov 5 8000 common shares bought and retired for $14 per share

Dec 24 Declared a dividend of $1.25 per share to common shareholders

Required:

Prepare entries to record the above transactions.