Dividends and Common shares

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The shareholders' equity section of Genghis Corporation's balance sheet at January 1, 2020 was as follows. Both preferred shares and common shares have no par value. Balance - December 31, 2020 Answer Genghis Corporation Balance Sheet (partial) As at January 1, 2020 Shareholders' Equity Contributed Capital Preferred Shares, $4 noncumulative, 210,000 authorized, 2,100, issued and outstanding $185,000 Common Shares, unlimited authorized, 30,000 issued and outstanding $1,120,000 Total Contributed Capital $1,120,000 Retained Earning $253,000 Total Shareholders' Equity $1,373,000 No dividend was declared for common shareholders. However on December 15, 2020, the directors decided to pay dividends to preferred shareholders. The dividend payment date was December 28, 2020. Income before income tax for the year was $250,000. Income tax expense for the year was $50,000. The company uses the retained earnings account to record dividends. a) Calculate the amount of dividend to be paid to preferred shareholders. Dividends Payable: $Answerl b) Prepare journal entry for declaration and payment of preferred dividend. Date Account Title and Explanation Debit Credit Dec 15 Answer Retained Earnings |Answer Answerl Dividends Payable Answer Dividend payable on preferred shares Dec 28 Answerl Dividends Payable Answer Answerl Cash Answer Recording payment of dividend c) Calculate the ending balance of retained earnings for the year ended December 31, 2020. Genghis Corporation Statement of Retained Earnings For the Month Ended December 31, 2020 Opening Balance Answer Add: Net Income Answer Less: Cash Dividends Answer5. On November 1, 2020, Krazy Kitty Inc. declared $177,000 of dividends payable to shareholders on Novem ber 15, 2020. There are 23,800 common shares and 2,000, $3 cumulative preferred shares. No new shares were issued during the year and dividends were last declared in 2017. Krazy Kitty Inc. had retained earnings of $2,505,000 at the beginning of 2020 and earned a net income of $783,000 during the year. Write the journal en try to record the declaration and subsequent payout of the dividends on November 28, 2020 The company uses the cash dividends account to record dividends. Round all answers to the nearest whole dollar. For transactions that have 2 debits or credits, enter the accounts in alphabetical order. Date Account Title and Explanation Debit Credit Nov 1 Answer Cash Dividends-Common Answer Answer Cash Dividends-Preferred, cumulative Answer ? Answer Dividends Payable Answer 177000 Record dividend payable