Case 5 (25 marks) Queen Co. was formed on July 1, 2020. It was authorized to issue 300,000 shares of 40 par value ordinary shares and 100,000 shares of 8% 100 par value, cumulative and non-participating preference shares. Queen Co. has a July 1-June 30 fiscal year. The following information relates to the equity accounts of Queen Co. Ordinary Shares Prior to the 20222023 fiscal year, Queen Co. had 110,000 ordinary shares outstanding issued as follows. 1. 85,000 shares were issued for cash on July 1, 2020, at 124 per share. 2. On July 24, 2020, 5,000 shares were exchanged for a plot of land which cost the seller 280,000 in 2014 and had an estimated fair value of 880,000 on July 24, 2020. 3. 20,000 shares were issued on March 1, 2021, for 168 per share. During the 20222023 fiscal year, the following transactions regarding ordinary shares took place. November Queen Co. purchased 2,000 of its own shares on the open market at 156 per share. 30, 2022 Queen Co. uses the cost method for treasury shares. December Queen Co. declared a 5% share dividend for ordinary shareholders of record on January 15, 2022 15, 2023, to be issued on January 31, 2023. Queen Co. was having a liquidity problem and could not afford a cash dividend at the time. Queen Co.'s ordinary shares were selling at 208 per share on December 15, 2022. 20, Queen Co. sold 500 of its own ordinary shares that it had purchased for 84,000 on 2023 November 30, 2022. June Preference Shares Queen Co. issued 40,000 preference shares at 176 per share on July 1, 2021. Cash Dividends Queen Co. has followed a schedule of declaring cash dividends in December and June, with payment being made to shareholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2023, are shown below. Declaration Date Ordinary Shares Preference Shares 12/15/21 0.60 per share 2.00 per share 6/15/22 0.60 per share 2.00 per share 12/15/22 2.00 per share No cash dividends were declared during June 2023 due to the company's liquidity problems. Case 5 (25 marks) Queen Co. was formed on July 1, 2020. It was authorized to issue 300,000 shares of 40 par value ordinary shares and 100,000 shares of 8% 100 par value, cumulative and non-participating preference shares. Queen Co. has a July 1-June 30 fiscal year. The following information relates to the equity accounts of Queen Co. Ordinary Shares Prior to the 20222023 fiscal year, Queen Co. had 110,000 ordinary shares outstanding issued as follows. 1. 85,000 shares were issued for cash on July 1, 2020, at 124 per share. 2. On July 24, 2020, 5,000 shares were exchanged for a plot of land which cost the seller 280,000 in 2014 and had an estimated fair value of 880,000 on July 24, 2020. 3. 20,000 shares were issued on March 1, 2021, for 168 per share. During the 20222023 fiscal year, the following transactions regarding ordinary shares took place. November Queen Co. purchased 2,000 of its own shares on the open market at 156 per share. 30, 2022 Queen Co. uses the cost method for treasury shares. December Queen Co. declared a 5% share dividend for ordinary shareholders of record on January 15, 2022 15, 2023, to be issued on January 31, 2023. Queen Co. was having a liquidity problem and could not afford a cash dividend at the time. Queen Co.'s ordinary shares were selling at 208 per share on December 15, 2022. 20, Queen Co. sold 500 of its own ordinary shares that it had purchased for 84,000 on 2023 November 30, 2022. June Preference Shares Queen Co. issued 40,000 preference shares at 176 per share on July 1, 2021. Cash Dividends Queen Co. has followed a schedule of declaring cash dividends in December and June, with payment being made to shareholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2023, are shown below. Declaration Date Ordinary Shares Preference Shares 12/15/21 0.60 per share 2.00 per share 6/15/22 0.60 per share 2.00 per share 12/15/22 2.00 per share No cash dividends were declared during June 2023 due to the company's liquidity problems