ratios. P13.12A (LO 2, 3, 4, 5, 6) AP Annora Inc., a private company, is authorized to issue an unlimited num- ber of common shares and 100,000 noncumulative $4 preferred shares. It began operations on January 1, 2021, and the following are selected transactions during 2021: stments Jan. 1 Issued 300,000 common shares for $150,000 cash. 2 Issued 30,000 preferred shares for $40 cash per share. Dec. 1 Declared a total of $225,000 in dividends, payable on January 5, to shareholders of record on December 13. 31 Determined that it had total revenues of $915,000 and operating expenses of $610,000. Annora elected to report under ASPE, It has a 15% income tax rate and paid income tax instalments during the year of $40,000. Instructions a. Record the share issue and dividend transactions. b. Prepare a partial income statement starting with profit beiore income tax and record the adjusting entry for income tax ) A0L c. Prepare a statement of retained earnings and the shareholders' equity section of the balance sheet. Taking It Further Why are common shareholders sometimes referred to as "residual owners