Question 4 at the beginning of the year LKS Itd has the following balances share capital Common shares up to a max 4,000,000 authorized 850,000 shares issued at average price per share $6,800,000 $8 $3 cumulative Preferred shares up to a max 500000 authorized 80,000 shares issued at the average share price S74 $5,920,000 1,575,000 Retained earnings opening balance the following transactions occur during the year a) the board declares a cash dividend of $650,000 1-May (the company failed to pay last years preferred dividend) b) the company pays the cash dividend 13-May c) the company does a 3:1 stock split to increase the marketability of the shares d) the company issues 2500 preferred shares to the accountant to cover accounting expenses of (Common only) 16-May 80,000 28-May e) the company makes a net income of $950,000 Create the entry to close the income summary on May 31 DR CR Date Description 1-May 3 marks 13-May 3 marks 16-May 1 mark 11 marks total 28-May 2 marks 31-May 2 marks Prepare a statement of retained earnings fo LKS Itd statement of retained earnings LKS Itd opening balance + net income - cash dividend - stock divdend Closing balance 3 marks prepare a statement of shareholders equity statement of shareholders equity LKS itd share capital common shares issued $3 preferred shares issued Total share capital Retained earnings total shareholders equity 2 marks 2 marks what is the average price of the common share? what is the average price of the preferred share? What was the dividend per share for the common shares? 2 marks 2 DECIMAL PLACES HERE! (HINT* Partc) 3 marks (Hint* This is BEFORE the stock split)