how does it get dividend payable preferred shares 50000 on Dec2

Problem 13-8A Atlanul 1. 2015. Computer Metals Processing Ltd.'s balance sheet reported the followina shareholders' equity: Shareholders' Equity Recording the issuance of ares; allocating cash dividends ulating book value preparing the ability and shareholders quity sections of the balance sheet @ Total shareholders' equity 52,450,000 $ 200,000 Contributed capital: Preferred shares, $1.25, cumulative (2 years in arrears), liquidation price of $20,100,000 shares authorized, 30,000 shares issued and outstanding Common shares: Class A 20,000 shares authorized and issued and outstanding! Glass B, unlimited number of shares authorized, 150,000 shares issued and outstanding Total contributed capital 125,000 Retained earnings Total shareholders' equity 1,500,000 1,825,000 300,000 $2,125,000 ccounting for Partnerships and Corporate Transactions The company had the following transactions on the dates indicated: 2015 Dec. 1 The company declared dividends of $180,000 payable on January 15, 2016, to the shareholders of record on December 31. Indicate the amount that would be payable to the preferred shareholders and to the common shareholders. The dividend rate for Class A and Class B shares is the same. 31 The company reported net income after taxes of $60,000 for the year and then closed the Income Summary account. 2016 Jan 7 The company sold 10,000 preferred shares at $23.50 per share. 15 The company paid the dividend declared on December 1, 2015. Feb. 14 The company sold 15,000 Class B common shares at $11.00 per share. Dec. 2 The company declared dividends of($120,000, payable on January 15, 2017, to the shareholders of record on December 31, 2016. Indicate the amount that would be payable to the preferred shareholders and to the common shareholders. 31 The company reported net income after taxes of $145,000 and then closed the Income Summary account. 2017 Jan. 15 Paid the dividend declared on December 2, 2016. Required 1. Record the transactions in the general journal. 2. Prepare the liability and shareholders' equity sections of the balance sheet as of the close of business on December 31, 2016. 3. Calculate the book value per share of the preferred shares and of the common shares (Class A and Class B combined) on December 31, 2016. 4. What was the average price at which the Class A common shares were issued? DATE 2016 General Journal POST. ACCOUNT TITLES AND EXPLANATIONS DEBIT CREDIT Dec. 120,000 50,000 2 Retained Earnings Dividends Payable-Preferred Dividends Payable-Common Shares, Class A Dividends Payable-Common Shares, 7,568 Class B 62,432 To record dividends declared on shares. (40,000 x $1.25) 145,000 31 Income Summary Retained Earnings To close books and record net income for year. 145,000 2017 Jan. 15 Dividends Payable-Preferred Dividends Payable-Common Shares, Class A Dividends Payable-Common Shares, Class B Cash Payment of dividends declared December 2. 50,000 7,568 62.432 120,000 * Class A common shares Class B common shares (150,000+ 15,000) 20,000 (or 2/18.5 of total shares) 165,000 (or 16.5/18.5 of total shares) 185.000 Class A = 2/18.5 x ($120,000 - $50,000) = $7,568 Class B - 16.5/18.5 x ($120,000 - $50,000) - 562,432 ,P 13-8A DATE 2015 General Journal POST. ACCOUNT TITLES AND EXPLANATIONS REF. | DEBIT CREDIT Dec. 180.000 112,500 1 Retained Earnings Dividends Payable-Preferred Shares Dividends Payable-Common Shares Class A Dividends Payable-Common Shares Class B To record dividends declared on shares. (30,000 x $1.25 x 3 years) 7,941" 59,559 60.000 31 Income Summary Retained Earnings To close books and record net income for year 60,000 2016 Jan. 235.000 7 Cash Preferred Shares Sale of preferred shares for cash. (10,000 x $23.50) 1 235.000 15 Dividends PayablePreferred Shares Dividends Payable-Common Shares. Class A Dividends Payable-Common Shares. Class B Cash Payment of dividends declared December 1 112.500 7.941 59.559 180.000 Feb. 165,000 165,000 14 Cash Common Shares-Class B Sale of common shares for cash. (15,000 x $11) * Class A common shares Class B common shares 20,000 150,000 170,000 (or 2/17 of total common shares) (or 15/17 of total common shares) Class A-2/17 X (S180,000 - $112,500) - $7,941 Class B = 15/17 x ($180,000 - $112,500) = $59,559