Whispering Winds Corp. reported the following amounts in the shareholders equity section of its December 31, 2019 SFP:

Preferred shares, $6 dividend (10,000 shares authorized, 1,900 shares issued)		$171,000
Common shares (unlimited authorized, 25,000 issued)		600,000
Contributed surplus		89,400
Retained earnings		280,000
Accumulated other comprehensive income		70,000
Total		$1,210,400

During 2020, the company had the following transactions that affect shareholders equity.

1.		Paid the annual 2019 $6 per share dividend on preferred shares and a $4 per share dividend on common shares. These dividends had been declared on December 31, 2019.
2.		Purchased 3,900 shares of its own outstanding common shares for $40 per share and cancelled them.
3.		Issued 800 shares of preferred shares at $108 per share (at the beginning of the year).
4.		Declared a 10% stock dividend on the outstanding common shares at their fair value when the shares were selling for $44 per share.
5.		Issued the stock dividend.
6.		Declared the annual 2020 $6 per share dividend on preferred shares and a $3 per share dividend on common shares. These dividends are payable in 2021.

The contributed surplus arose from net excess of proceeds over cost on a previous cancellation of common shares. Total assets at December 31, 2019, were $2,140,000, and total assets at December 31, 2020 were $2,616,000. The company follows IFRS.

a) Prepare journal entries to record the transactions above

b) Prepare the statement of changes in shareholders equity for the year ended December 31, 2020. Assume 2020 net income was $450,000 and comprehensive income was $465,000

c) Prepare the December 31, 2020 shareholders equity section.

d) Calculate the rate of return on common shareholders equity and the rate of return on total assets for 2020. (Round percentage answers to 2 decimal places, e.g. 52.75%.)

Rate of return on common shareholders equity		enter percentages rounded to 2 decimal places %
Rate of return on total assets		enter percentages rounded to 2 decimal places %

Is Whispering Winds trading on the equity?

select an option YesNo