Complete the following questions and submit the file through the Blackboard assignment tool in pdf format for grading. Show all your work. These questions will serve as review for Term Exam #2.

TABLE 1:

Electronics Inc. had 12,000 common shares outstanding on January 1, 2016. On March 1, it issued 6,000 common shares. Electronics net income for the year was $32,000. It declared and paid preferred dividends of $600 and common dividends of $320 during 2016.

1. What is the weighted average number of common shares for 2016? A. 15,000 B. 17,000 C. 18,000 D. 12,000

2. What are the earnings per share for 2016? (Round up) A. 1.85 B. 1.88 C. 1.92 D. 1.82

3. Crestco Corporation has 2,000 $4 cumulative preferred shares outstanding. There were no dividends in arrears at the end of 2014, and no dividends were paid in 2015 or 2016. Crestco also has 10,000 common shares outstanding. a. If Crestco pays a total of $60,000 in dividends in 2017, how much will each class of shareholders receive? b. If Crestco pays a total of $20,000 in dividends in 2017, how much will each class of shareholders Assignment #2 - Chp. 13 & 14 Corporations Review Questions Page 2

4. Byrne Corporation had the following accounts at January 1, 2016: common shares, no par value, unlimited number of shares authorized, 4,000 shares issued, $150,000; preferred shares, $8 cumulative, no par value, unlimited number of shares authorized, 1,000 shares issued, $50,000; retained earnings, $43,000. During the year, the company paid the preferred dividend and paid a $0.50 dividend to the common shareholders. The company had net income of $79,000. Instructions Prepare the Statement of Retained Earnings section of the balance sheet at December 31, 2016.

5. Trainor Corporation was organized on January 1, 2014. During its first year, the corporation issued 20,000 preferred shares with a $0.30 dividend entitlement and 200,000 common shares, both at $1 per share. At December 31, the corporation's year end, Trainor declared the following cash dividends: Preferred shares Common Shares 2014 $0.25 per share $0.00 2015 as required by terms $0.05 per share 2016 as required by terms $0.15 per share Instructions Calculate the total dividends and the amount paid to each class of shares, assuming the preferred dividend is cumulative. Assignment #2 - Chp. 13 & 14 Corporations Review Questions Page 3

6. Answer each of the following independent questions. Use the words "no effect," "increase," or "decrease" to indicate the effects of stock dividends and stock splits on the following items: Stock Split Stock Dividend Cash Dividend Retained earnings account Total shareholders' equity Number of shares authorized Number of shares issued Total assets and liabilities Common shares amount

7. Instructions Identify and prepare the journal entries to record cash dividends (all 3 dates). Identify and prepare the journal entries to record common stock dividends (all 3 dates).