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CHAPTER 12 Organization and Operation of Corporations Exercise 12-7 Retained earnings, dividend distribution L02,5 CHECK FIGURE: 2. $104,900 The December 31, 2017, equity section of ZoomZoom Inc.'s balance sheet appears below. ZoomZoom Inc.te Equity Section of the Balance Sheet December 31, 2017 Contributed capital: Preferred shares, $3.75 cumulative, 40,000 shares authorized and issued ...... $1,660,000 Preferred shares, $10 non-cumulative, 8,000 share's authorized and issued ....... 670,000 Common shares, 400,000 shares authorized and issued.......... 1,750,000 Total contributed capital.... $4,080,000 Retained earnings.... 741,600 Total equity ......... $4,821,600 Required All the shares were issued on January 1, 2015 (when the corporation began operations). No dividends had been declared during the first two years of operations (2015 and 2016). During 2017, the cash dividends declared and paid totalled $613,300. 1. Calculate the amount of cash dividends paid during 2017 to each of the three classes of shares. 2. Assuming profit earned during 2017 was $1,250,000, determine the December 31, 2016, balance in retained earnings. 3. Prepare a statement of changes in equity for the year ended December 31, 2017. Exercise 12-8 Share transactions, distribution of dividends, equity L02,3,5 White Pear Inc., an organic soap manufacturer, showed the following equity information as at December 31, 2017: White Pear Inc. Equity Section of the Balance Sheet December 31, 2017 Contributed capital: Preferred shares, $3.60 non-cumulative; 100,000 shares authorized 75,000 shares issued and outstanding .....................................:" Common shares; unlimited shares authorized; shares issued and outstanding .... B Total contributed capital ..... $6,250,000 Retained earnings .... Total equity.. D Other information: a. The preferred shares had sold for an average price of $36.00. b. The common shares had sold for an average price of $14.20. c. Retained earnings at December 31, 2016, was $192,000. During 2017, profit earned was $1,728,000. The board of directors declared a total cash dividend of $540,000. Required Calculate A, B, C. D, and F