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$4 Preferred Shares, non-cumulative, convertible, 100,000 shares authorized, 20,000 shares issued Common shares, unlimited shares authorized, 200,000 shares issued Retained Earnings $800,000 $2,400,000 $470,000 a. A18 Record ALL the 2019 transactions on the general journal page at the end of the test. A4 Indicate the dollar amount and number of preferred shares and common shares at the end of the year. b. Jan. 31 Issued 50,000 common shares. The average price of the shares is $12 and the market price of the shares is $13. Issued 5,000 common shares to Tsainos Law Firm in exchange for legal services valued Mar. 31 at $80,000. The market price of the shares is $15. Shareholders converted 1,000 preferred shares to common shares when the market Jun 30 value of the preferred shares was $45 and the market value of the common shares was $16. One share of preferred is convertible to 4 common shares. The board of directors declared the preferred dividend for 2019 for shareholders of Nov. 30 record Dec. 15, to be paid on Dec. 31. The board of directors declared a $0.50 dividend per share for common shareholders Nov. 30 of record Dec. 15, to be paid Dec. 31. Dec. 15 Reacquired 10,000 common shares at price of $18. Dec. 31 Net Income before taxes for 2017 was $850,000. The corporate tax rate is 30%. (2 entries) Dec. 31 Distributed and paid the dividends declared on Nov. 30. Credit Date Jan. 31 Debit 600,000 Account Titles Cash Common Shares issued 50,000 shares 600,000 Mar.31 Legal Fees Expense

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