12-4A
$1,560,000 462,000 $2,022,000 Contributed capital Preferred shares. $17 cumulative, issued, and outstanding....... Common shares, unlimited shares authorized, 40.000 shares issued and outstanding Total contributed capital vertible into common a referred are converted int ity section of the balan Retained earings Total equity balance shoes he company plans to pay quired Refer to the equity section above. Assume that the preferred are convertible of eight common shares for each share of preferred. If on April 1, 2020, prepare the entry and describe how this affects the equity section place beforene her the conversion takes place (immediately after the conversion). 'SIS Component: If you are a common shareholder in this company, and the compa cash dividends of $720,000. does it make any difference to you w dividend declaration? Why? Problem 12-4A Analyzing equity, dividend allocation 102, 5 Use the information provided below to answer the following questions. Victoria Products Inc. Equity Section of the Balance Sheet October 31, 2020 $ 540,000 B c Contributed capital: Preferred shares, $3.00 non-cumulative; unlimited shares authorized, 180,000 A shares issued and outstanding........ Common shares, unlimited shares authorized, 325,000 shares issued and outstanding........ Total contributed capital..... Deficit. $3,468,000 Total equity ............. Other information: All of the shares were issued during the first year of operations (year ended October 31, 2019). The common shares were issued for an average price of $9.60 per share. The preferred shares were issued for an average price of $18.00 per share. Retained Earnings at October 31, 2019, was $384,000. No dividends had been paid for the yea October 31, 2020. 850 CHAPTER 12 Organization and Operation of Corporations Required 1. Calculate A. 2. Calculate B. 3. Calculate C. 4. Calculate D. 5. Calculate Profit/Loss for the year ended October 31, 2020. 6. Assume cash dividends of $120,000 were paid during the year ended October 31, 2019. Calculate the total dividends actually paid during the year ended October 31, 2019, to the: a. Preferred shareholders. b. Common shareholders. 7. Referring to your answers in Part 6 above, calculate the dividends per share actually received by the: a. Preferred shareholders. b. Common shareholders. 8. Are there any dividends in arrears as at October 31, 2020? If yes, calculate the amount of the arrears. 9. Explain the difference between "Retained Earnings and Deficit." 10. Explain the difference between "dividends in arrears" and "dividends payable." Problem 12-5A Dividend allocation Lo5 excel Garda World Security Corporation has the following shares, taken from the equity section of its balance sh ated December 31, 2020. $2,880,000 1,280,000 Preferred shares, $4.48 non-cumulative, 45,000 shares authorized and issued Common shares, 80,000 shares authorized and issued ....... "All shares were issued during 2018 itu Corporation declared and paid total divi
