Question 6 (13 marks, 23 minutes) ABC Company has been in operation since 2005. As of December 31, 2008 the company had the following amounts in Shareholders Equity:

	Number of shares issued	Dollar amount
Common shares	45,000	$517,500
$ 3.20, Cumulative Preferred shares	8,000	$640,000
Retained earnings		$725,000

Presented below are selected transactions for 2009:

February 14: 5,000 common shares were issued @ $12 per share

March 31: Declared dividends on the preferred shares to be paid on April 25, 2009 to shareholders of record on April 14, 2009

June 15: Repurchased 7,500 common shares for $10.50 per share

August 31: Declared a 2 for 1 stock split on common shares

Part A: Record the appropriate journal for the above transactions. Clearly indicate if no entry is required.

Part B: Assuming net earnings for the year ended December 31, 2009 is $127,500, prepare the Shareholders Equity section of the balance sheet as at December 31, 2009.