Question Two (80 points) ABC Company reported the following amounts in the equity section as on December 31, 2021 in the statement of financial position. Share capital - preference, 6%, $100 par (10,000 shares authorized, $300,000 3,000 shares issued) Share capital - ordinary, S5 par (100,000 shares authorized, 20,000 100,000 shares issued) Share premium - preference 125,000 Retained carnings 450,000 Total $975,000 During 2022, ABC Company took part in the following transactions concerning equity. 1. Purchased 1,500 shares of its own outstanding ordinary shares for $50 per share. ABC uses the cost method. 2. Reissued 200 treasury shares for equipment with a fair value of $10,000. 3. Declared a 15% share dividend on the outstanding ordinary shares when the shares are selling for $55 per share. 4. Issued the share dividend. 5. Declared the annual 2022 $6 per share dividend on preference shares. These dividends are payable in 2023 6. Declared $3 per share dividend on ordinary shares. These dividends are payable in 2023. 7. A 2-for-1 share split is declared and issued. 8. Issued 700 preference shares at $115 per share. Question Two (80 points) ABC Company reported the following amounts in the equity section as on December 31, 2021 in the statement of financial position. Share capital - preference, 6%, $100 par (10,000 shares authorized, $300,000 3,000 shares issued) Share capital - ordinary, S5 par (100,000 shares authorized, 20,000 100,000 shares issued) Share premium - preference 125,000 Retained carnings 450,000 Total $975,000 During 2022, ABC Company took part in the following transactions concerning equity. 1. Purchased 1,500 shares of its own outstanding ordinary shares for $50 per share. ABC uses the cost method. 2. Reissued 200 treasury shares for equipment with a fair value of $10,000. 3. Declared a 15% share dividend on the outstanding ordinary shares when the shares are selling for $55 per share. 4. Issued the share dividend. 5. Declared the annual 2022 $6 per share dividend on preference shares. These dividends are payable in 2023 6. Declared $3 per share dividend on ordinary shares. These dividends are payable in 2023. 7. A 2-for-1 share split is declared and issued. 8. Issued 700 preference shares at $115 per share