Question One. On January 1, 2016, ZANACO Bank was incorporated with the authorized capital of K3, 000, 000, K2 Par Value common stock and 200,000 K100 par value 10% Cumulative preferred stock. The following transactions relating to the stockholders equity occurred in the first year of operations. On January 1st 2016, the board authorized the issuance of K1, 000, 000 common stock shares of these 500, 000 shares were issued for cash at K3 per share, while 500, 000 were subscribed for K4 per share. On January 2nd 2016, a further 1 million common stock shares were issued in exchange for the office building valued at k3,500,000 On January 3rd 2016the company issued 100,000 10% cumulative preference shares at k120 per share On January 30th U.B.A received full payment for the shares subscribed for on January 1st. Required; a. Prepare journal entries to record the above transactions. ( 5 marks) b. Prepare the stockholders equity section of ZANACO statement of Financial Position as at December 2016. c. ZANACO made losses in the first two years (2016 and 2017) of operation but in the third year 2018 it made a profit of K50 Million. Show how this profit will be shared among the shareholders if the board decides that 25% of the profits should be retained. (2 Marks) d. Based on the information given in C above, calculate the earnings per share EPS for common shareholders (1 mark)