The shareholders' equity section of the balance sheet of Borkowski Corporation as of December 31, 20x1 was as follows:

The following transactions occurred in \(20 \times 2\) for Borkowski Corporation:
Feb. 28 The board of directors declared a 10 per cent share dividend to shareholders of record on March 25 to be distributed on April 5. The market value on this date is 16 .
Mar. 25 Date of record for share dividend.
Apr. 5 Issued share dividend.
Aug. 3 Declared a 2 for 1 share split.
Dec. 31 Declared a 5 per cent share dividend to shareholders of record on January 25 to be distributed on February 5. The market value per share was 9.
Dec. 31 Closed Share Dividends Declared to Retained Earnings.
REQUIRED 1. Record the transactions for Borkowski Corporation in general journal form.
2. Prepare the shareholders' equity section of the company's balance sheet as of December \(31,20 \times 2\). Assume net profit for \(20 \times 2\) is 108,000 . (Note: Use T accounts to keep track of transactions.)

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Share Capital Ordinary Shares 4 nominal value, 500,000 shares authorised, 200,000 shares issued and outstanding Share Premium Total Share Capital Retained Earnings Total Shareholders' Equity 800,000 1,000,000 1,800,000 1,200,000 3,000,000