Congo Corp. has the following capital structure at the beginning of the year:
Preferred shares, $3 no par valye, cumulative 25,000 shares authorized
5,000 shares issued and outstanding 60 $300,000
Common shares, no par value, 60,000 shares authorized 510,000
Total contributed capital						810,000
Retained earnings							340,000
Total shareholder's equity						$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 $100,000 was declared. The preferred shares are
participating to a maximum of 8%
Record dividends payable to common and prferred shares in separate accounts
ii. 5% common stock dividend was declared. The current market value of the common shares is $17 a share
iii. Net income for the year was $190,000. Record the closing entry
b. Incorporating all the above information, construct the shareholder's equity section of the SFP