Font IS Paragraph QUESTION 2 (20 marks) McKenny Corporation, whose accounting year ends at December 31, lost some of its accounting records in a recent fire on June 25, 2021. The following information has been salvaged from the rubble by the company accountant. 1. The 8% cumulative preferred stock, $50 par account has a balance of $225,000. The combined account of the par value and additional paid-in-capital in excess of par preferred stock were $236,250. 2. The common stock, $3 par has an issuance price of $5 per share during the initial public sales of the shares, 10 years ago 3. There was a total of 580,000 shares of common stock issued before the fire. 4. The retained earnings account had a balance of $1,520,000 at January 1, 2021 and a balance of $1,380,100 at June 25, 2021 (the day of the fire). 5. There were 5,000 shares of treasury stock of common stock before the fire. The stock was purchased at a market price of $7.50 per share. On May 25, 2021 (one month before the fire), 1,000 shares of treasury stock were sold for $8.50 per share. 6. A piece of burnt paper indicated that an interim (6 months) cash dividend for both the preferred and common stocks was declared by the Board of Directors and approved by the shareholders on June 1, 2021. (Note: semi-annual dividend for preferred stock will be 4%) Required: Answer the following questions relating to events before the fire on June 25, 2021. (2 marks for each question) a) How many shares of preferred stock were issued and outstanding? (2 marks) b) What was the amount in the common stock par account? (2 marks) c) What was the average issue price of a share of preferred stock? (2 marks) d) What was the amount in the paid-in-capital - common stock account? (2 marks) e) What was the total paid-in-capital (or total contributed capital) amount? (2 marks) f) What was the total amount of dividends declared by management to both classes of shareholders? (2 marks) g) How much of dividends were allocated for the common stockholders? (2 marks) h) What was the amount of treasury stock at cost? (2 marks) 0 What was the total shareholders' equity amount? (2 marks) English (United States) LE Te to search BI