Question B1 Northern Corporation ("Northern") was incorporated in January 2019. Part I Below is the information extracted from shareholders' equity section of Northem at 31 December 2019. Shareholders' Equity Non-cumulative preference shares, 9%, $50 par, 50,000 shares authorized $200,000 Ordinary shares, $10 par, 500,000 shares authorized 300,000 Share premium: Ordinary shares 80,000 Retained earnings 680,000 Less: Treasury shares (5,000 ordinary shares at cost) (40.000) SL.220.000 Required: Based on the above information, answer the following questions: (1 mark) (1 mark) (a) How many ordinary shares are issued? 6) How many preference shares are issued? (C) How many ordinary shares are eligible for dividends if dividend is declared? (d) How many preference shares are eligible for dividends if dividend is declared? ( (1 mark) (1 mark) Question Bl (continued) Part II During 2020, the following events occurred in sequential order: (1) 20 January, Northern further issued 12,000 ordinary shares for cash at $12.5 per share. (2) 5 May, Northern reissued all of the treasury shares at $12 per share. (3) 31 July, Mr Koo, an investor, bought 1,000 ordinary shares of Northern from Mr Wong, a shareholder at $15,000. (4) 31 December, the board of directors declared a cash dividend of Si per Share to ordinary shareholders, as well as satisfying all preference share dividend requirements. All dividends will be paid next year. Required: (a) Prepare the journal entries for the above transactions for Northern Corporation. If an event does not require any entry, state "No entry" and no explanation is required. (7 marks) (b) Prepare the shareholders' equity section of the statement of Financial Position for Northem Corporation at 31 December 2020, AFTER considering your answers of Part I and Part II: given the company's profit for 2020 is $450,000. (4 marks)