Question 7 (8 points) The following equity balances were reported for Star Co. on December 31, 2019 Common shares. 60.000 shares issued $1,480.000 Retained earnings 225,600 Total equity $ 1.705,600 On January 26, 2020 the board of directors declared a 5% stock dividend to the shareholders of record on February 12 to be distributed on February 28. The market price of the shares on January 26 was $6.00. On July 4, 2020 the board of directors declared a 2:1 stock split. Required: a. Prepare the journal entries required for the above transactions, (5 marks) b. What is the total number of common shares issued and outstanding at December 31, 2020? (Show your calculations) (3 marks) D OC - Paragraph BIU. Answer (a) ENG 1107 AM IN 4/242020 earch Question 6 (8 points) Pop Stop Company began operations on January 1, 2019 by issuing 54,000 common shares at $13 per share and 26.000 $8 cumulative preferred shares at $20 per share. During 2019 Pop Stop issued an additional 8.000 common shares at $11 per share and 2.000 preferred shares at $30 per share. 2019 profit was $355,000 and the Board declared $81,000 in dividends. Required: Prepare the Shareholders' Equity section of Pop Stop's Balance Sheet at December 31, 2019. (8 marks) BIU ENG 1107 AM 4142020 A (2) N re to search Question 8 (12 points) King Street Inc. was authorized to issue 66,000 $5.50 non-cumulative preferred shares and an unlimited number of common shares. The company's fiscal year end is December 31 During 2019, their first year of operations, the following selected transactions occurred: January 3 Issued 11,000 common shares at $7.75 each for cash. May 3 9,000 preferred shares and 8,000 common shares were issued at $22.00 and $9.00 respectively, for cash 1.600 preferred shares were issued in exchange for a van with a fair value of $23,000 October 14 December 15 The company declared the required cash dividend on the preferred shares and a $2 per common share cash dividend payable on January 30, 2020 to the shareholders of record of January 20, 2020. Required: Prepare journal entries to record the above 2019 transactions (12 marks) Format BIU He o search BANGLOS Question 9 (10 points) Smith Lid, issued $500,000 of 6%, 5 year bonds for $521,880 on January 1, 2019. the day the bonds were dated. The market rate on this date was 5% Interest is paid semi-annually on June 30 and December 31. The effective interest method is used to allocate the interest. Required: Note: Round all answers to the nearest dollar a. Prepare the journal entry required to record the issuance of the bond. (2 marks) b. Prepare the journal entries required to record the first and second interest payments. (8 marks) DSC - Format B I . GENERAL JOURNAL ACCOUNT TITLES AND DEBIT CREDIT EXPLANATION 1101 AM nere to search LANG LOUNSEN