Michael Inc. is authorized to issue 50,000, S8, no par value, cumulative, fully participating preferred shares, and 750,000 no par value common shares. Prepare journal entries to record the following transactions that occurred during the first year of operations: Jan Sold 96,000 common shares for $8 per share, cash Exchanged 10,000 prefered shares for equipment with a fair 10 15 market value of $80,000 Exchanged 500 common shares for $2,500 worth of legal fees incurred during organization. Feb On January 1, Vancouver Ltd's equity was as follows: common shares, 1,000,000 shares authorized, 525,000 shares issued. Prepare journal entries to record the following transactions: May 1 A cash dividend of S1.10 per share was declared by the board of directors to shareholders of record on May 20, payable on June 1. Paid the cash dividend. June XYZ Limited, since it was organized in January 2014, has had outstanding 1,500, ten-dollar, nonparticipating, preferred shares and 15,000 common shares. The corporation declared and paid dividends each year as shown below. Calculate the total dividends distributed to each class of shares under each of the assumptions given Assume Preferred Shares are Assume Preferred Shares are Noncumulative Camulative Dividends Declared Preferred Common and Paid Dividend Dividend Preferred Common Divi dend Dividend Year $10,000 $36,000 $60,000 2014 2015 2016