Problem 11.4A Shareholders' Equity L.O. 4,5 Early in the year Bill Barnes and several friends organized a corporation called Barnes Communications Limited. The corporation was authorized to issue 50,000 shares of $100 par value, 10 percent cumulative preference shares and 400,000 shares of $2 par value ordinary shares. The following transactions (among others) occurred during the year: Jan. 6 Issued for cash 20,000 shares of ordinary shares at $14 per share. The shares were issued to Barnes and 10 other investors. Jan. 7 issued an additional 500 shares of ordinary shares to Barnes in exchange for his services in organizing the corporation. The shareholders agreed that these services were worth $7,000. Jan. 12 Issued 2.500 shares of preference shares for cash of $250,000. June 4 Acquired land as a building site in exchange for 15,000 shares of ordinary shares. In view of the appraised value of the land and the progress of the company, the directors agreed that the ordinary shares was to be valued for purposes of this transaction at $15 per share. Nov. 15 The first annual dividend of $10 per share was declared on the preference shares to be paid December 20. (Hint: Record the dividend by debiting Dividends and crediting Dividends Payable.) Dec. 20 Paid the cash dividend declared on November 15. Dec. 31 After the revenue and expenses were closed into the Income Summary account, that account indicated a profit of $147,200. a. Prepare journal entries in general journal form to record the above transactions. Include entries at December 31 to close the Income Summary account and the Dividends account. (Omit the "$" sign in your response.) b. Prepare the shareholders' equity section of the Barnes Communications Limited statement of financial position at December 31. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "S" sign in your response.)