Chan Corporation is a well-established merchandizing company that specializes in home appliance. The company prepares its financial statements and adjusting entries at June 30 each year. The trial balance of the Chan Corporation at June 30, 2019 is presented on the page next. You are also required to take into consideration the following information: At July 1, 2016, 6%, $100 par value, 30,000 cumulative preference shares were authorized. 10,000 shares were issued and outstanding. There was no change in the financial year 2018/2019. At July 1, 2016, 100,000 ordinary shares of $20 par value were authorized. 80,000 shares were issued and outstanding. There were changes in the financial year 2018/2019. You are required to account for these changes in the financial records. In addition to the account titles used in the trial balance, the Chan Corporation also uses the following account titles: Depreciation expense: Building Depreciation expense: Equipment Dividends Dividends payable Interest expense Interest payable Interest receivable Interest revenue Income taxes expense Income taxes payable Prepaid rent Salary payable Share premium: Treasury shares Supplies Supplies expense Utilities expense Credit Chan Corporation Trial Balance as at June 30, 2019 Debit Cash $ 648,000 Accounts receivable 730,000 Inventory 724,000 Prepaid insurance 88,000 Land 4,500,000 Building 2,760,000 Equipment 1,437,000 Accumulated depreciation: Building Accumulated depreciation: Equipment Notes payable Accounts payable Unearned sales revenue Ordinary shares Preference shares Share premium: ordinary shares Retained earnings Sales revenue Cost of goods sold 12,600,000 Salary expense 1,552,000 Rent expense 395,400 Insurance expense 56,000 925,000 370,000 300,000 566,000 57,400 1,600,000 1,000,000 1,200,000 1,272,000 18,200,000 Totals $ 25,490,400 S 25.490.400 All accounting transactions for the financial year ended June 30, 2019 were recorded except for the additional transactions and information listed below. Item Date Descriptions No. May 2 June 8 June 25 (iv) June 30 June 30 June 30 The company repurchased 1,000 of its own ordinary shares from the stock market for the treasury at a cost of $40,000. The company reissued 600 of these treasury shares for cash of $30,000. Received bills for electricity, water and gas, totaled at $6,000. The amount will be due to pay on July 10, 2019. The notes payable in the trial balance as at June 30, 2019 is a 3. year 6% note, signed by the company on October 1, 2018. Interest and principal will be paid when the note gets due. The June 2019 bank statement received on July 5, 2019 shows that the bank has credited $450 interest revenue for the month ended June 30, 2019 to the company saving account with the bank. The company delivered $48,000 goods previously ordered by customers who had paid the amount in April 2019. Accrued salaries for the month are $170,000. The balance of prepaid insurance represents a 10-month insurance The contract signed by the company on November 1, 2018 with effective on the same date. Depreciation on equipment for the year, $140,000. Depreciation on building for the year, $100,000. It is estimated that the company is subject to an income tax rate of 10% of profit before income taxes. These taxes will be payable in next financial year. The company declared a total dividend of $200,000. It was scheduled to be paid on August 31, 2019. (vii) (viii) June 30 June 30 June 30 June 30 June 30 (xi) (xii) June 30 QUESTION 7 (continued) Required: a. Prepare journal entries for the Chan Corporation to capture the additional transactions and information listed above. Explanations for each journal entry are NOT required. (18 marks) b. Determine the balance in the Cash account on the Statement of Financial Position of Chan Corporation as at June 30, 2019. (2 marks) c. Prepare the shareholders' equity section of the statement of financial position at June 30, (7 marks) 2019. d. As at June 30, 2019, compute the dividends per share for cumulative preference shares. Assume the dividends in arrears from previous year were $20,000. (2 marks) e. As at June 30, 2019, compute the dividends per share for ordinary shares. (4 marks)