tock split as deciared and issued E15-12 (Dividends and Shareholders' Equity Section) Falkon Corp. reported the following an holders' equity section of its Decermber 31, 20t6 statement of financial position Preferred shares, $8 dividend (10,000 shares authorized, 2,000 shares ssued) 200,000 Comm Contributed surplus Retained earnings Accumulated ather comprehensive income 600,000 55,000 250,000 75,000 on shares (unlimited authorized, 25,000 issued) Total $1,180,000 During 2017, the company had the following transactions that affect shareholders' equity,. aid the annual 2016 s8 per share dividend on preferred shares and a S3 per share dividend on common shares. These dividends had been declared on December 31, 2016. 2. Parchased 3,700 shares of its own outsta 3. Issued 1,000 shares of preferred shares at S105 per share (at the beginning of the year). 4 Declared a 10% stock dividend on the outstanding common shares when the shares were selling for SAS per share. 5. Issued the stock dividend nding common shares for $35 per share and cancelled them. 6 Declared the annunal 2017 88 per shareed hares and a $2 per share dividend on common shares. These dividends are payable in 2018. The contributed surplus arose from net excess of proceeds over cost on a previous cancellation of cormon shares. Total assets at December 3I, 2016 were $2,140,000, and total assets at December 31, 2017 were $2,616,000. The conticany NGINE follows IFRS DEEPER Instructions (a) Prepare journal entries to record the transactions above, (b) Prepare the statement of changes in shareholders' equity for the year ended December 31, 2017 (c) Prepare the December 31, 2017 shareholders' equity section. Assume 2017 net income was $450,000 and compre- hensive in come was S455,000. (d) Calculate the rate of return on common shareholders' equity and the rate of return on total assets for 2017. Is NANCE Falkon trading on the equity? Evaluate the results from the perspective of a common shareholder. O2,3) E15-13 (Statement of Changes in Shareholders' Equity) Miss M's Dance Studios Ltd. is a public company, and accordingly uses IFRS for financial reporting, The mm