Facebook .. 09:51 1 19% 14 L13 - Corporations.docx Michael Inc. is authorized to issue 50,000, $8, no par value, cumulative, fully participating preferred shares, and 750,000 no par value common shares. Prepare journal entries to record the following transactions that occurred during the first year of operations: Jan. 10 Sold 96,000 common shares for $8 per share, cash. 15 Exchanged 10.000 preferred shares for equipment with a fair market value of $80,000 Feb. | Exchanged 500 common shares for $2,500 worth of legal fees incurred during organization On January 1, Vancouver Ltd's equity was as follows: common shares, 1,000,000 shares authorized, 525,000 shares issued. Prepare journal entries to record the following transactions: May ! A cash dividend of $1.10 per share was declared by the board of directors to shareholders of record on May 20, payable on June 1. June 1 Paid the cash dividend XYZ Limited, since it was organized in January 2014, has had outstanding 1,500, ten-dollar, nonparticipating, preferred shares, and 15,000 common shares. The corporation declared and paid dividends each year as shown below. Calculate the total dividends distributed to each class of shares under each of the assumptions given Assume Preferred Assume Preferred Shares are Shares are Noncumulative Cumulative Dividends Declared Preferred Common Preferred Common Year and Paid Dividend Dividend Dividend Dividend 2014 $10,000 2015 $36,000 2016 $60,000