. . 2 3 4 Confederation College AC223 Financial Accounting II Assignment #1 March, 2020 Case 2: Turtle Island Tours - Preferred Shares (10 Marks) Turtle Island Tours has the following Equity section of their balance sheet on December 31, 2019. $ 120,000.00 Contributed Capital: Preferred shares, $1.00 cumulative, 20,000 shares authorized 2,000 shares issued and outstanding Common shares, unlimited shares authorized 6,000 shares issued and outstanding Total contributed capital Retained earnings Total Equity 72,000.00 $ 192,000.00 48,000.00 $ 240,000.00 Show the entry to be made in each of these two separate situations: Scenario 1: No dividends were paid to any class of share in the prior year. The board decides to pay out $12,000 in dividends Scenario 2: Dividends were paid out in the prior year and no unpaid liability exists for the preferred shares. The board decides to pay out $12,000 in dividends