Required: 1.1 Prepare the journal entries to record the transactions of Canada Ltd. (Show all workings.) 1.2 Prepare the equity section at December 2020 Answer the question in the space provided below. Canada Ltd has been authorised to issue 20 000 $100 par value, 10% non-cumulative no preference shares and 1 000 000 no-par ordinary shares. The company assigned a $2.50 stated value to the ordinary shares. At 31 December 2020, the ledger contained the following balances pertaining to equity: Share capital - Preference Share premium-Preference Share capital-Ordinary 120 000 12 000 1 000 000 Share premium-Ordinary 1600 000 Treasury shares-Ordinary Share premium-Treasury Retained Earnings Additional information: 9 000 1000 82 000 The preference shares were issued for land having a fair value of $132 000. All the ordinary shares were issued for cash. On 1 November, 1 500 ordinary shares were purchased for the treasury at a per share cost of $9. In December, 500 treasury shares were sold for $11 per share. No dividends were declared in 2020. Answer: Journal entries Date Details Dr $ Ct $