The contributed surplus arose from net excess of proceeds over cost on a previous cancellation of common shares. Stellar prepares financial statements in accordance with ASPE. The following transactions occurred, in the order given, during 2020. 1. Subscriptions were sold for 12,300 common shares at $22 per share. The first payment was for $12 per share. 2. The second payment for the sale in item 1 above was for $10 per share. All payments were received on the second payment except for 1,800 shares. 3. In accordance with the subscription contract, which requires that defaulting subscribers have all their payments refunded, refund cheques were sent to the defaulting subscribers. At this point, common shares were issued to subscribers who had fully paid on the contract. 4. Repurchased 22,100 common shares at $27 per share. They were then retired. 5. Sold 5,300 preferred shares and 3,800 common shares together for $302,000. The common shares had a fair value of $31 per share. No. Account Titles and Explanation Debit Credit 1. 2. 3. (Torecord refund to defaulting subscribers) (To issue shares fully paid on subscriptions) 4. 5