Requred: 1. prepare journal entries to reflect the above transcations. Show the split between common and preferred dividends in the dividend entries as apropriate.

2. prepare the shareholders equity section of the SFP after reflecting the above transcations. Earnings were $308,200 and total comphrensive income was $351,000, reflecting earnings plus an aditional gain of $42,800 on foregin exchange caused by a foreign suubsidary.

A14-7 Share Retirement: On 1 January 20X5, BC Ventures Corp. reported the following in shareholders equity Preferred shares, no-par value, $0.70, cumulative, authorized, unlimited shares $386,000 issued, 80,000 shares Common shares, no-par value, authorized unlimited shares issued, 80,000 shares 642,000 Contributed capital on retirement of common shares 14.000 t250,000 Retained earnings 38 000 AOCI for foreign exchange gains on foreign subsidiary During 20X5 certain shares were reacquired. In accordance with the regulations in BC Ventures incorporating legislation, all reacquired shares were retired. Transactions were as follows 15 January Bought 7,000 preferred shares for $5 20 per share Bought 2.000 common shares for $11 per share 12 February Bought 4,000 preferred shares for $4.00 per share 25 February Bought 5.000 preferred shares for $6.00 per share 26 Aprit Bought 8,000 common shares for $7.50 per share 16 July Other transactions during the year Stock dividend on commen shares. 59% declared and distributed The board of 30 July directors agreed to capitalize the dividend at the market vaiue of $7 75 per share The board of directors declared a dividend adequate to pay S1 per share to al common shareholders This meant that the board alsc had to declare the preferred dividend 30 November Pags 1013 Required