Question 6: 6 marks (15 minutes) On January 1, 20x1, Pepper Company had 100,000 shares of common shares issued and outstanding. The book value of those shares was $500,000. Furthermore, they had 20,000 $2, cumulative, preferred shares issued and outstanding which had a book value of $100,000. The following transactions took place in 20x1: Feb 28 - Issued 50,000 common shares for $220,000 Jun 1 - Repurchased and cancelled 40,000 shares at $5.00 each. Jun 30 - A 2:1 stock split was announced Dec 15 - Declared a dividend of $1.00/share to shareholders of record on Dec 31. Required - Prepare all journal entries to record the above transactions. Round to two decimal points on any calculations. Bank Enter your answers in this section Account Debit Credit 220000 250000 Common Stock Paid in capital in excess of par Treasury Stock