Question text The equity section of ABC Corporations statement of financial position as of December 31, 2019 is as follows: Equity Share capitalordinary, $5 par value; authorized, 2,000,000 shares; issued, 400,000 shares $2,000,000 Share premiumordinary 850,000 Retained earnings 3,000,000 $5,850,000 The following events occurred during 2020: Jan. 16 Declared a cash dividend of 20 cents per share, payable February 15 to share-holders of record on February 5. Feb. 10 20,000 shares of authorized and unissued ordinary shares were sold for $12 per share. April 1 A two-for-one split was carried out. The par value of the shares was to be reduced to $2.50 per share. Fair value on March 31 was $18 per share. July 1 A 15% share dividend was declared and issued. Fair value is currently $10 per share. Instructions Explain how each event will affect the following: Number of shares Outstanding, Share premium - Ordinary, Retained earnings.