Burlington Clothes was incorporated on October 1, 2018.The articles of incorporation indicated the company was authorized to issue 600,000 shares of no par value common shares and 200,000,$2 preferred shares that are cumulative and participating in distributions in excess of 5% of a dividend rate on the common shares. The company's year-end is September 30.The following information relates to the company's shareholders' equity account.

1.80,000common sharesissued for cash on October 1, 2018, at $60 per share.

2.20,000 $2 preferred shares were issued on October 1, 2018 at $80 per share.

3.10,000 common shares exchanged on Dec 15, 2018, for land in the downtown core.The land had originally cost the seller $300,000 and had an estimated fair value of $550,000 on Dec 15, 2018 when Burlington's share were selling for $58.

4.10,000 common shares issued on June 1, 2019; the shares had been subscribed for $55 per share on October 31, 2018.

5.October 1, 2020: subscriptions were received for 8,000 common shares at $60 per share.The first installment of $200,000 was received on this date and the final installment was paid on September 30, 2021.

6.November 1, 2020: the company purchased 4,000 of its common shares at $58 per shareand restored these shares to the status of authorized but unissued.

7.December 1, 2020: the company declared a 5% stock dividend for shareholders of record on January 1, 2021.The company was short on cash and therefore could not pay a cash dividend.The company's shares were selling at $57 per share on December 1, 2020.

8.March 15, 2021: the company sold 10000 common shares for $450,000.

9.Dividends:

Burlington did not declare any dividends until September 30, 2020.At that date total dividends of$500,000 were declared.

10. The company incurred the following profits (loss) since incorporation:

2019(25,000)

2020675,000

2021 400,000

Required:

a)Determine the amount of dividends received by preferred and common shareholders from the September 30, 2020 declaration.

b)Prepare the journal entries for 2020-21 fiscal year.

c)Prepare the statement of changes in equity and the shareholders' equity section of the balance sheet for September 30, 2021.