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Section B (75%) - Compulsory Short Questions There are FIVE questions in this section. Answer ALL questions in this section on A4 single- line papers.

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Section B (75%) - Compulsory Short Questions There are FIVE questions in this section. Answer ALL questions in this section on A4 single- line papers. Explanations of the journal entries are not required. Correct your answers to 2 decimal places if necessary. Show your workings. Question B1 Below is the shareholders' equity section of Andrea Corporation ("Andrea")'s Statement of Financial Position as at 1 January 2021. Shareholders' Equity Contributed Capital: Ordinary shares, S2 par, 800,000 shares authorized, 100,000 shares issued $200,000 Share premium: Ordinary shares 60,000 260,000 Retained earnings 250.000 Total shareholders' equity 510,000 During 2021, the following events occurred in sequential order: (1) Andrea issued 300,000 of its $2 par value ordinary shares for $3.2 per share. (2) Andrea issued 5,000 of its $80 par value 6% cumulative preference shares, for $92 per share. Andrea can issue up to 100,000 of its preference shares. (3) Andrea purchased 8,000 of its ordinary shares at a cost of $4.2 per share in the open market. (4) On 31 December 2021, the board of directors declared and paid all the dividends, including $0.2 per share to ordinary shareholders, as well as satisfying annual preference share dividend requirements. (5) On 31 December 2021, Mr Chan, a shareholder, used 10,000 ordinary shares of Andrea as a security to borrow a bank loan to purchase a car for his own use. The market price of the share was $5.4 on 31 December 2021. Required: (a) Prepare the joumal entries for the above transactions. If an event does not require any entry, state "No entry" and no explanation is required. (12 marks) 6) Compute the Retained Earnings balance at 31 December 2021, given the company's profit for 2021 is $220,000. Show your workings

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