26. The following information is available for XYZ Corporation:

Shareholders Equity

Share Capital

Preferred Shares, unlimited number of shares authorized,

5,000, $2.50 convertible, noncumulative shares issued $ 250,000

Common Shares, unlimited number

of shares authorized, 500,000 shares issued 1,000,000

Each preferred share is convertible into four common shares. During the year, 2,000 preferred shares were converted into common shares. The journal entry to record the conversion would be:

a. Preferred Shares 100,000

Common Shares . 100,000

b. Preferred Shares 4,000

Common Shares . 4,000

c. Preferred Shares 400,000

Common Shares . 400,000

d. Common Shares. 100,000

Preferred Shares. 100,000

e. Preferred Shares 16,000

Common Shares. 16,000

29. Norton Corporation has the following shareholders equity at year end September 30, 2020:

Shareholders' Equity Share Capital $ 10 Preferred Shares, cumulative 10,000 shares authorized, 5,000 shares issued $ 5,000,000 Common Shares, 200,000 shares authorized, 10,000 shares issued 200,000 Total Share Capital 5,200,000 Retained Earnings 570,000 Total Shareholders Equity $ 5,770,000

On September 15, 2020, Norton Corporation declared a $ 170,000 cash dividend to be paid on October 15 to shareholders of record on September 28. Assuming that the preferred dividends have NOT been paid for fiscal years 2018 and 2019, the total amount of the dividends paid to the preferred shareholders on October 15, 2020 would be:

a) $50,000

b) $0

c) $170,000

d) $150,000

30. Tantramar Corporation has the following shareholders equity on July 31, 2020:

Shareholders' Equity Share Capital $ 10 Preferred Shares, cumulative 10,000 shares authorized, 5,000 shares issued $ 2,000,000 Common Shares, 600,000 shares authorized, 10,000 shares issued 300,000 Total Share Capital 2,300,000 Retained Earnings 500,000 Total Shareholders Equity $ 2,800,000

Assume that during the following fiscal year the company had a profit of $ 65,000 and declared and paid cash dividends of $15,000. The ending balance of retained earnings on July 31, 2021 would be:

a) $500,000

b) $565,000

c) $550,000

d) cannot be determined from the information provided