Congo Corp has the following capital structure at the beginning of this year Preferred shiss 5250 no par velon cumulative 6,000 shares issued and outstanding Common shares, no par value 00.000 shares authorized 000 shares authorized $300,000 $10.000 $10.000 340,000 $1,150,000 50,000 shares issued and outstanding Total contributed capital Retained earnings Total shareholders' equity Instructions $110,000 Record the following transactions which occurred consecutively this year. Show all calculations There are no dividends in arrears. A total cash dividend of was declared. The preferred shares are participating to a maximum of 7% Record dividends payable to common and preferred shares in separate accounts 8% common stock dividend was declared. The current market value of the common shares is $16 a share iii. Net income for the year was $200,000 Record the closing entry Incorporating all the above information, construct the shareholders' equity section of the SFP

1: Question 7 2 50 $300,000 5 : : : Congo Corp. has the following capital structure at the beginning of this year Preferred shares. $2.50 no par value, cumulative 25,000 shares authorized 6,000 shares issued and outstanding Common shares, no par value, 60,000 shares authorized 50.000 shares issued and outstanding Total contributed capital Retained earnings Total shareholders' equity 510.000 810,000 340,000 $1.150.000 Instructions a) Record the following transactions which occurred consecutively this year. Show all calculations. i. There are no dividends in arrears. A total cash dividend of $110.000 was declared. The preferred shares are participating to a maximum of 7% Record dividends payable to common and preferred shares in separate accounts ii. 8% common stock dividend was declared. The current market value of the common shares is $16 a share $200,000 Record the closing entry iii. Net income for the year was b) Incorporating all the above information, construct the shareholders' equity section of the SFP EV + 7 V Uv B Paragraph