Section B (75%) - Short Questions Answer ALL five questions in this section in the answer sheet. Each question carries 15 marks. 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 unadjusted trial balance of Johnson Corporation as at 31 December 2019: Johnson Corporation Unadjusted Trial Balance 31 December 2019 Debit Credit 966,525 10,500 477,750 67,725 131,250 13,650 2,586,150 Cash Office supplies Accounts receivable Prepaid rent Equipment Accumulated depreciation: Equipment Land and building Accounts payable Dividend payable Ordinary share capital (par value $5 per share) Share premium Treasury shares (acquired at $11 each) Retained earnings Dividends Service revenues Operating expenses TOTAL 68,250 57,750 3,000,000 75,000 404,250 378,000 57,750 1,755,000 645,750 5,347,650 5,347,650 Johnson Corporation closes its books annually on 31 December. It keeps only ONE share premium account to record any related transactions. After preparing the above unadjusted Trial Balance, the accountant of Johnson found that he had omitted the following transactions: 1. 1 December - issued 1,000, 5% preference shares of $100 par value at a price of $105 per share. 2. 5 December - sold 11,000 of its treasury shares at $ 10 per share. 3. 20 December - sold 15,000 of its treasury shares at $12 per share. 4. On 31 December, the Board of Directors declared to pay a final dividend of $0.2 per ordinary share. All dividends that Johnson owed to its shareholders were paid out on the same day. Page 5 of 5 Question B1 (continued) Required: (a) Journalize the above transactions. No explanation is required. (13 marks) (b) What is the balance of Retained Earnings after the 2019 year-end closing? (2 marks) Page 6 of 6