Question 7 (8 points) The following equity balances were reported for Star Co. on December 31, 2019: Common shares, 60,000 shares issued Retained earnings Total equity $1,480,000 225,600 $ 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)