1. On April 30, the directors of Sage Hill Corporation declared dividends of $0.85 per common share and directed that preferred dividends be paid as required to the shareholders of record on May 14, payable May 28. The company has 14,900 $0.90 preferred and 43,000 common shares issued. No dividends were paid in the previous fiscal year.

Calculate the amount of dividends that would be paid if the preferred shares are cumulative.

Calculate the amount of dividends that would be paid if the preferred shares are noncumulative.

2. For the year ended December 31, 2021, MetlockInc. reported profit of $172,500. During the year, the company declared a total of $113,500 cash dividends and paid $95,000 of these dividends.

Prepare a statement of retained earnings for the year, assuming the balance in Retained Earnings on December 31, 2020, was $257,000

3. On October 14, the board of directors of Pronghorn Corp. voted to declare the annual preferred share dividend to shareholders of record on November 1, payable on November 21. The company is authorized to issue 100,000, $3.50noncumulative preferred shares; 22,000 have been issued.

Prepare the required entries on each of these dates.