1.5/3 III View Policies Show Attempt History Current Attempt in Progress Foley Corporation has the following capital structure at the beginning of the year Share capital-preference 6%E50 par value. 20,000 shares authorized 6000 shares issued and outstanding Share capital-ordinary. E10 par value, 60,000 shares authorized 40,000 shares issued and outstanding Share premium-ordinary Retained earnings 300,000 400.000 110.000 440.000 Total equity E1.250.000 (a) Your answer is correct Record the following transactions which occurred consecutively (Credit account titles are automatically indented when mot entered Do not indent manually if no entry is required select "No Entry for the account title and enter for the amount 1. enterna. Do not rent montany. I no entry is required, select "No entry for the account tres and enter for the amountes) A total cash dividend of 90,000 was declared and payable to shareholders of record. Record dividends payable on ordinary and preference shares in separate accounts. A 10% ordinary share dividend was declared. The average fair value of the ordinary shares is 18 a share Assume that net income for the year was 150.000 (record the closing entry). 2 3. No. Account Titles and Explanation Debit Credit 1. Retained Earnings 90000 Dividends Payable. Preferred 18000 Dividends Payable-Ordinary 72000 2 Retained Earnings 40000 Ordinary Share Dividend Distributable 40000 3. Income Summary 150000 Retained Earning 150000 (To record the closing entries Construct the equity section incorporating all the above information. Foley CORPORATION Statement of Financial Position Equity Share Capital-Preference 300000 Share Capital-Ordinary 400000 Ordinary Share Dividend Distributable 40000 Paid-in Capital in Excess of Par - Common Stock 142000 Retained Earnings 428000 E 1310000 Total Equity