On January 2, ABC partnership incorporated into ABC Corporation and had its first share issuing on that date of 300,000 common shares and 60,000 preferred shares that have a $4.00 annual cumulative dividend. The common shares sold for $5.50 each and the preferred shares sold for $70 each. On March 1, common shares were trading at $6.60 and on March 1 the corporation issued 30,000 common shares in exchange for legal services that would have normally been billed for a total cost of $150,000. On September 10, ABC Corporation repurchased 50,000 common shares for $3.60 each from the market. On December 1, the company declared a dividend to its shareholders of $400,000. For Part 1 of this question, which Journal entry describes the transaction that occurred on January 2? Oa) Dr. Cash; Owner's Capital b) Dr. Cash; Cr. Retained Earnings c) Dr. Cash; Cr. Common Shares & Preferred Shares On January 2, ABC partnership incorporated into ABC Corporation and had its first share issuing on that date of 300,000 common shares and 60,000 preferred shares that have a $4.00 annual cumulative dividend. The common shares sold for $5.50 each and the preferred shares sold for $70 each. On March 1, common shares were trading at $6.60 and on March 1 the corporation issued 30,000 common shares in exchange for legal services that would have normally been billed for a total cost of $150,000. On September 10, ABC Corporation repurchased 50,000 common shares for $3.60 each from the market. On December 1, the company declared a dividend to its shareholders of $400,000. For Part 2 of this question, what debit will be made on March 1? a) Dr. Common Shares $198,000 b) Dr. Legal Expense $198,000 Oc) Dr. Common Shares $150,000 d) Dr. Legal Expense $150,000 On January 2, ABC partnership incorporated into ABC Corporation and had its first share issuing on that date of 300,000 common shares and 60,000 preferred shares that have a $4.00 annual cumulative dividend. The common shares sold for $5.50 each and the preferred shares sold for $70 each. On March 1, common shares were trading at $6.60 and on March 1 the corporation issued 30,000 common shares in exchange for legal services that would have normally been billed for a total cost of $150,000. On September 10, ABC Corporation repurchased 50,000 common shares for $3.60 each from the market. On December 1, the company declared a dividend to its shareholders of $400,000. For Part 3 of this question, what amount will be debited on September 10? a) $ 180,000 b) $272,727 c) $330,000 d) $ 180,930 For Part 4 of this question, what will the journal entry be on December 1? a) Dr. Dividends Payable - Preferred Shares $200,000 & Dividends Payable - Common Shares $200,000; Cr. Cash b) Dr. Dividends Payable - Preferred Shares $240,000 & Dividends Payable - Common Shares $160,000; Cr. Cash c) Dr. Retained Earnings $400,000; Cr. Dividends Payable - Preferred Shares $240,000 & Dividends Payable - Common Shares $160,000 d) Dr. Retained Earnings $400,000; Cr. Dividends Payable - Preferred Shares $200,000 & Dividends Payable - Common Shares $200,000 e) None of the above On January 2, ABC partnership incorporated into ABC Corporation and had its first share issuing on that date of 300,000 common shares and 60,000 preferred shares that have a $4.00 annual cumulative dividend. The common shares sold for $5.50 each and the preferred shares sold for $70 each. On March 1, common shares were trading at $6.60 and on March 1 the corporation issued 30,000 common shares in exchange for legal services that would have normally been billed for a total cost of $150,000. On September 10, ABC Corporation repurchased 50,000 common shares for $3.60 each from the market. On December 1, the company declared a dividend to its shareholders of $400,000. For Part 5 of this question, what is the balance of the contributed surplus account on December 31? a) $ 180,000 b) $0 c) $ 180,775 d) $ 150,000