Question
On December 31, 2017, BBE issued 10,000 redeem- able and retractable preferred shares at $50 per share, for tax planning purposes. The shares are redeem-
On December 31, 2017, BBE issued 10,000 redeem- able and retractable preferred shares at $50 per share, for tax planning purposes. The shares are redeem- able and retractable at any date up to December 31, 2022, at which point the redeemable and retractable feature expires. The preferred shares pay a mandatory dividend of $10 per share per year until the end of the redeemable and retractable period, after which the dividends are not cumulative and not mandatory. Thomas recorded these shares as equity, and the first dividend payment on December 1, 2017 was recorded through equity.
prepare the jornl entris for this
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