The following information is taken from the statement of financial position and related disclosures of Blue Bird Corporation: $5,400,000 40,000 shares Total contributed capital Outstanding shares: $1.50 preferred shares, no-par-value, callable at $25.50, issued at $25 per share Common shares, no-par-value Preferred dividends in arrears Total shareholders' equity 100,000 shares two years $4,700,000 Which of the following statements is not correct? Select one: O a. The preferred dividends in arrears amount to $120,000 and should appear as a liability in the corporation's statement of financial position. b. The average issue price per common share is $44. c. The shareholders' equity section of the statement of financial position should show a deficit of $700,000. d. The corporation has not paid any dividends on common shares during the past two years. Notes Which of the following transactions will cause an increase on both sides (left and right) of the basic accounting equation? Select one: O a. Collection of cash from a customer who purchased merchandise on account. b. Payment to a supplier for inventory purchased account. c. Conversion of bonds to common shares. d. Purchase of equipment for cash. Notes