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Nokomis Co. has the following information available regarding its share capital at December 31, 2020: $1,000,000 Preferred shares, $3 cumulative, 20,000 shares issued Preferred shares,

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Nokomis Co. has the following information available regarding its share capital at December 31, 2020: $1,000,000 Preferred shares, $3 cumulative, 20,000 shares issued Preferred shares, $4 noncumulative, 10,000 shares issued Common shares, 250,000 shares issued 500,000 1,500,000 The shares were issued when the corporation began its operations on January 1, 2018. No dividends were declared during 2018, 2019 and 2020. On November 27, 2021, the board of directors declares the required preferred share dividends and a $0.25 dividend for each of the common shares. The dividends are payable on January 2, 2022, to the shareholders of record on December 16, 2021. Instructions: a. Determine how much will be paid to each class of shares. b. Prepare the journal entries on the appropriate dates to record the dividends. C. Assume the maximum cash dividend the company can pay is $300,000. Determine how much will be paid to the preferred shareholders and to the common shareholders. 1. Paying a $0.50 cash dividend 2. Distributing a 10% stock dividend 3. Effecting a 3-for-1 stock split. The current fair value is $5 per share. Instructions: Indicate the balance for each of the following financial statement elements after adopting each proposal: Before Action $1,800,000 (1) After Cash Dividend (2) After Stock Dividend (3) After Stock Split Total assets Total liabilities $ 75,000 Common shares $1,200,000 Retained earnings $ 500,000 $1,700,000 Total shareholders equity $1,775,000 Total liabilities and shareholders' equity Number of common shares 50,000 . Lake of the Prairies Inc. (LOTP) reported the following pre-tax amounts for the year ended June 30, 2021: Profit before income tax (on continuing operations), $3,200,000 Loss from discontinued operations, $850,000 Loss on disposal of assets of discontinued operations, $600,000 Other comprehensive income, holding gain on an equity investment of $670,000 . . LOTP's effective income tax rate is 20%. Instructions: Prepare a statement of comprehensive income, beginning with income from continuing operations

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