IM corporation has 200,00 common shares outstanding and 10,000 shares of $2 cumulative preffered shares outstanding.

a) prepare journal entries for the following transactions:

1. December 1, 2002, the borad of directors declared a $150,000 dividend. The preffered shareholders had not received their dividend during 2001. The dividend will be paid on December 31.

2. April 1, 2003, issued 50,000 common shares for $14 each

b) year end is december 31. Net income for 2003 was $1,000,000 calculate earnings per share for 2003.