This document provides instructions to prepare journal entries to record transactions for Canada Ltd. and prepare the equity section of the balance sheet as of December 2022. It states that Canada Ltd. is authorized to issue 400,000 $100 par value 10% noncumulative preference shares and 3,000,000 no-par ordinary shares with a $5 stated value. Balances in the equity section include preference share capital of $40,000, ordinary share capital of $15,000, share premium of $30,000, treasury share capital of $13,500 and retained earnings of $5,000.

1. 1.1. Propare the joumal ontries to record the transactions of Canada Ltd. (Show all workings.)
1.2 Prepare the equity section as at December 2022 . Answer the quention in the space provided
below. Canada Lid has been authorised to issue 400000$100 par value, 10% no-par
noncumulative preference shares and 3.000000 no-par ordinary shares. The company assigned a
$5.00 stated value to the ordinary shares. On 31 December 2022, the ledger contained the
following balances pertaking to equity: Additional information: Al the preference shares were
issued for land having a fair value of $250000 . Al the ordinary shares were it sued for $6.00
cash. On 1 November, 1500 ordinary shares that were stated at $5 were purchased for the
treasury at a cost of $9 per share. In December, 500 treasury shares were sold for $11 per share.
No dividends were declared in 2022. No dividends whre deciafed in 2022 .