For each description, choose the term it best matches.

(liquidation preference, convertible, redeemable preferred shares,initial public offering , secondery market, authorized shares, R.E , issued shares , legal capital , public corporation , retractable prefered shares ,cumlative)

a)Preferred shares that give the issuing corporation the right to repurchase the shares at a specified price and date b)

The number of shares a corporation has actually sold c)

The share capital that must be retained in the business for the protection of corporate creditors d)

A preference to collect unpaid dividends on preferred shares before common shareholders can receive a dividend

Exercise 5-12 (Part Level Submission) MetlockLimited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2017, there were 30,000 common and 1,000 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $104. The balance in the Retained Earnings account on January 1, 2017, was $300,000. During 2017, the company had profit of $135,000 and declared a total of $80,000 of dividends, of which $62,000 was paid during the year. Prepare the shareholders' equity section of the balance sheet on December 31, 2017. METLOCK LIMITED Balance Sheet (Partial) Year Ended December 31, 2017 Shareholders' Equity Total Share Capital 5$ non cumulative preferred shares