Reference no: EM132494455

1) Shiloh's Entertainment has the following Shareholders' Equity as of January 1, 2018:

Preferred Shares, 8% cumulative, 10,000 issued, 50,000 authorized $ 500,000

Common Shares, 250,000 issued, unlimited authorized 1,000,000

Contribution Surplus - Common Shares 45,000

Retained Earnings 2,500,000

Accumulated Other Comprehensive Income 150,000

During the year the following transactions occurred:

1. A buyback of 5,000 common shares at a market value of $50 per share;
2. A 10% common stock dividend was declared and paid at a market value of $49 per share;
3.  A 2:1 common share stock split was declared and paid, after the split the market valve of a share was $25;
4. Issued 5,000 common shares at a market value of $27 per share and there was a $5,000 legal fee associated with the issuance;
5. Bought a piece of specialized equipment with a fair value of by issuing 5,000 common shares at a market price of $26 per share.

Required: Based on the above information :

Question a) Prepare the journal entries for the year pertaining to Shiloh's Shareholders' Equity;

Question b) Complete the Shiloh's 2018 Changes to Shareholders' Equity (denoting number of shares outstanding for both Preferred and Common Shares).