for part a, why common shares are 2,750,000

AP1t-10A (Dividend distributions) stungs changed during the year. Provide journal entries that would account for the changes Flatfish Limited reported the following items in shareholders equity on December 31, 2020 Share capital: Preferred shares, 85 cumulative dividend, 150,000 shares issued and outstanding, $15,000,000 Shure capital: Common shares, 750,000 issued and outstanding 10,000,000 Retained earnings 25.000,000 Required a. No dividends were declared in 2018 or 2019; however, in 2020, cash dividends of $5 million were declared. Cabeslate how much would be paid to each class of shares. b. Assuming that the number of common shares remained constant throughout 2020, what was the cash dividend per share distributed to the common shareholders? c. Early in 2021, when its common shares were selling at $59 per share, the company declared and distributed a 10% stock dividend. Describe the impact that this declaration will have on the shareholders' equity accounts. (Hint: It may be helpful to prepare the journal entry and closing entry related to this transaction.) m Solutions ch 11 - Protected View - Saved to this PC Search (Alt+Q) Layout References Mailings Review View Help in the financial statement are recorded at the amount at which the initially issued, not at the current market price. AP11-10A a. Preferred Common Total Arrears 2018 $750,000 $750,000 Arrears 2019 750,000 750,000 Current 2020 750,000 $2,750,000 3,500,000 $2,250,000 $2,750,000 $5,000,000 1 (150,000 shares x $5) = $750,000 = b. Common dividends per share = $2,750,000/750,000 = $3.67 c. The entries for the stock dividend would be: Stock Dividends Declared 4,425,000 Stock Dividends Issuable (750,000 shares x 10% x $59) 4,25,000 Stock Dividends Issuable 4,425,000