chapter 13- corporation

Sage Hill Merchandising Inc. had the following share capital and balances on January 1, 2021. $2,338,000 $2.50 cumulative preferred shares, convertible into common shares at a ratio of 4 common shares for 1 preferred share, unlimited number of shares authorized, 140,000 shares issued Common shares, unlimited number of shares authorized, 600,000 shares issued 2,160,000 The following transactions relating to shares occurred in 2021 and 2022. Mar 31, 2021 Sage Hill declared total annual dividends of $800,000 for shareholders of record on April 1, 2021. There were no dividend arrears at January 1, 2021. April 30, 2021 Sage Hill paid the dividends owing. July 10, 2021 Shareholders converted 25,000 preferred shares into common shares. The fair value per preferred share was $17.90; per common share, $4.90. Feb. 20, 2022 Sage Hill declared an annual dividend of $650,000 to shareholders of record on March 1, 2022. Mar. 5, 2022 Sage Hill paid $350,000 of the dividends owing. July 15, 2022 Shareholders converted 50,000 preferred shares into 200,000 common shares. The fair value per preferred share was $17.00; per common share, $5.40. Journalize each of the transactions. (Credit account titles are automatically indented when the amount is entered. Do not in for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 31, 2021 Cash Dividends - Common 800000 X Retained Earnings 800000 x Cash 800000 Apr. 30 Dividends Payable 800000 Cash 417500 July 10 Preferred Shares 72500 X Common Shares 490000 Feb. 20, 2022 TRetained Earnings 650000 X Dividends Payable 650000 Cash Dividends - Common 350000 72500 July 10 Preferred Shares 490000 Common Shares 650000 Feb. 20, 2022 TRetained Earnings 650000 X Dividends Payable 350000 Cash Dividends - Common 350000 Mar. 5 Dividends Payable 835000 Cash 245000 July 15 Preferred Shares 1080000 Common Shares