Question 4: Bikroy.com Inc. had the following shareholder's equity on January 1, 2020. Preferred shares, 8%, $100 par value, 10,000 shares authorized, 4,000 shares issued Common shares, $2 par value, 200,000 shares authorized, 80,000 shares issued Common shares subscribed, 10,000 shares Contributed surplus - Preferred Contributed surplus - Common Retained Earnings $ 400,000 160,000 20,000 940,000 780,000 780,000 2,320,000 40,000 $2,280,000 Less: Common share subscriptions receivable Total shareholder's equity During 2020, the following transactions occurred. 1. Equipment was purchased in exchange of 500 shares of common stock. The share's market value on the exchange date was $16 per share. 2. Sold 1,000 shares of common stock and 100 shares of preferred stock for the lump-sum price of $32,000. The common shares had a market price of $18 at the time of the sale. 3. Sold 2,000 shares of preferred for cash at $108 per share 4. All of the subscribers paid their subscription prices into the firm. 5. The common shares were issued. 6. Repurchased and retired 1,000 common shares at $19 per share 7. Net Income for the year was $650,000. Prepared the shareholder's equity section for the company as at December 31, 2020. (4 Marks)