Secord limited has two classes of shares outstanding preferred (6$ dividends) and common. At December 31, 2016, the following accounts and balances were included in shareholders equity.

Preferred shares, 300,000 shares issued (authorized 1,000,000 shares) 300,000

common shares 25,000,000

contributed surplus-preffered 200,000

contributed surplus-common. 2,000,000

retained earnings 5,500,000

accumulated other comprehensive income 250,000

The contributive accounts arise from net excess of proceeds over cost on previous cancellation of shares of each respective class. The following transactions affected shareholders equity during 2017:

Jan 1

Issues 25,000 common shares at 25$ per share

Feb 1

Issues 50,000 common shares at 20$ per share

June 1

Declared a 2 for 1 stock split (common shares)

July 1

Purchase and retired 30,000 common shares at 15$ per share. Round average cost of share to the nearest cent

Dec 31

Net income of 2.1 million comprehensive income is 2,050,000

Dec 31

The preferred dividend is declared and a common dividend of 0.50 per share is declared

Instruction

a) prepare a statement of changes in equity and shareholder equity section of the financial statement for December 31 2017. Show calculations with T accounts

b)prepare journal entry for repurchase of 30,000 common shares on July 1 2017

c)prepare journal entry for repurchase of 30,000 common shares assuming with repurchase taking place may 31 at 15$ per share. What effect will the change of date have on total shareholders equity?