Healthy Company was incorporated in 2016 and engaged in manufacturing and trading of sports products. Part I Healthy Company was authorized to issue 300,000 ordinary shares of $2 par value and 200,000 7% non-cumulative preference shares for $8 par value. During 2016, 100,000 ordinary shares were issued for $4 and 75,000 preference shares were issued for $12 per share. In 2017, Healthy Company repurchased 5,000 ordinary shares from existing shareholders for $8 per share. The company reported loss of $40,000 in 2016 and profit of $935,500 in 2017. On 31 December 2017, the Company declared dividends of $0.5 per share on the ordinary shares outstanding, as well as satisfied all preference share dividend requirements Required: Prepare the shareholders' equity section of the Statement of Financial Position for Healthy Company at 31 December 2017. (5 marks) Part II During 2018, the following events occurred in sequential order (1) Healthy Company issued 100,000 ordinary shares in exchange for a machine valued at $500,000. Heathy Company reissued all of the treasury shares at a price of $12 per share. (2) (3) The board of directors declared dividends of S1.5 per share on the ordinary shares outstanding and annual dividends on preference shares as at 31 December 2018. The dividends declared will be paid in February 2019. Required: (a) Refer to the information in Part I, prepare the journal entries for the above transactions. (9 marks) (b) State an example that a company requires to reacquire its own shares from the existing shareholders (1 mark)