Question 5 of 16 -/12 E Prince Observation incorporated on May 1, 2020, and was authorized to issue 500.000 common shares and 100.000.5% non- participating convertible preferred shares. During the remainder of 2020, the company entered into the following transactions Issued 31,000 common shares in exchanged for $682,000. issued 5,000 preferred shares in exchange for $60,000. 3. Repurchased 2,000 common shares for $23 per share in the open market 1. 2. The company entered into no other transactions that affected shareholders equity during 2020. (a) Provide the journal entries for each of the transactions. (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 for the amounts) No. Account Titles and Explanation Debit Credit 1. (Issued common shares) 2. (Issued preferred shares) 3. (b) Prince Observation generated $786,000 in net income in 2020 and did not declare any dividends during 2020. Prepare the shareholders' equity section of the statement of financial position as of December 31, 2020. Prince Observation Inc. Shareholders' Equity December 31, 2020 $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit