Perfect Ponds Inc. (PPI) is a backyard pond design and installation company. PPI was incorporated during 2020, with an unlimited number of common shares, and 42,000 preferred shares with a $ 3 dividend rate authorized. PPI follows ASPE. The following transactions took place during the first year of operations with respect to these shares: Jan. 1 Jan. 15 Feb. 20 Mar. 3 May 10 The articles of incorporation were filed and state that an unlimited number of common shares and 42,000 preferred shares are authorized 25,200 common shares were sold by subscription to 3 individuals, who each purchased 8,400 shares for $ 42 per share. The terms require 8% of the balance to be paid in cash immediately. The balance was to be paid by December 31, 2021, at which time the shares will be issued. 58,800 common shares were sold by subscription to 7 individuals who each purchased 8.400 shares for $ 42 per share. The terms require that 8% of the balance be paid in cash immediately, with the balance to be paid by December 31, 2020. Shares are to be issued once the full payment is received. 42,000 common shares were sold by an underwriter for $44 per share. The underwriter charged PPl a 4% commission on the sale PPI paid $ 1,680 to a printing company for costs involved in printing common share certificates. As well, an invoice for legal fees related to the issue of common shares was received for $ 12,600. PPl issued a combination of 1,680 common and 840 preferred shares to a new shareholder for a total price of $ 168,000. PPI was unable to estimate a fair value of the preferred shares, and the most recent sale of common shares was used to estimate the value of the common share portion of the transaction. PPI wanted to recognize the efforts of a key employee and offered him the opportunity to purchase 420 common shares for $ 44, to be paid by December 31, 2021. The employee accepted the offer and signed a note payable to PPI in the exchange. No interest was to be charged on the outstanding balance; however, the shares were issued immediately Of the 7 subscriptions issued on February 20, five subscriptions were paid in full and two subscribers defaulted. According to the subscription contract, the defaulting subscribers would not be issued shares for any amount that had been paid and no cash would be refunded. PPI declared a dividend of $ 168,000 for 2020. Net income for the year was $ 672,000. Sept. 23 Nov. 28 Dec. 31 Dec. 31 Prepare the journal entries to record the transactions for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) . Date Account Titles and Explanation Debit Credit Jan. 1 No Entry 0 No Entry Jan. 15 Cash 84672 Share Subscriptions Receivable 973728 Common Shares Subscribed 1058400 Feb. 20 Cash 197568 Share Subscriptions Receivable 2272032 Common Shares Subscribed 2469600 Mar. 3 Cash 1774080 Common Shares 1774080 May 10 Cash 14280 Common Shares 14280 Sept. 23 Cash 168000 Common Shares 73920 Preferred Shares 94080 Nov. 28 Notes Receivable 18480 Common Shares 18480 Dec. 31 Cash 1605240 Share Subscriptions Receivable 1605240 (To record collection of subscriptions receivable) Dec. 31 Common Shares Subscribed 1764000 Common Shares 1764000 (To record issuance of shares for fully paid subscriptions) DA NE Dec. 31 Common Shares Subscribed 705600 Share Subscriptions Receivable 649152 Contributed Surplus 56448 (To record forfeit of unpaid ( subscriptions receivable) Dec. 31 Dividends Pavable 2520 Dividends 2520 (To record dividends declared to preferred shareholders) Dec. 31 Dividends Pavable 165480 Dividends 165480 (To record dividends declared to common shareholders) What was amount of the dividend per share declared on December 31? (Round answer to 2 decimal places, eg. 5.25.) Dividend per share $ 165480 e Textbook and Media List of Accounts Your answer is partially correct. Prepare the shareholders' equity section of the SFP as of December 31, 2020. Perfect Ponds Inc. Shareholders' Equity December 31, 2020 Share Capital Common Shares $ Preferred Shares Accumulated Other Comprehensive Income Less Share Subscriptions Receivable Less Note receivable from employee for issued shares Total Share Capital Contributed Surplus Total Paid-in Capital Retained Earnings Total Shareholders' Equity Perfect Ponds Inc. (PPI) is a backyard pond design and installation company. PPI was incorporated during 2020, with an unlimited number of common shares, and 42,000 preferred shares with a $ 3 dividend rate authorized. PPI follows ASPE. The following transactions took place during the first year of operations with respect to these shares: Jan. 1 Jan. 15 Feb. 20 Mar. 3 May 10 The articles of incorporation were filed and state that an unlimited number of common shares and 42,000 preferred shares are authorized 25,200 common shares were sold by subscription to 3 individuals, who each purchased 8,400 shares for $ 42 per share. The terms require 8% of the balance to be paid in cash immediately. The balance was to be paid by December 31, 2021, at which time the shares will be issued. 58,800 common shares were sold by subscription to 7 individuals who each purchased 8.400 shares for $ 42 per share. The terms require that 8% of the balance be paid in cash immediately, with the balance to be paid by December 31, 2020. Shares are to be issued once the full payment is received. 42,000 common shares were sold by an underwriter for $44 per share. The underwriter charged PPl a 4% commission on the sale PPI paid $ 1,680 to a printing company for costs involved in printing common share certificates. As well, an invoice for legal fees related to the issue of common shares was received for $ 12,600. PPl issued a combination of 1,680 common and 840 preferred shares to a new shareholder for a total price of $ 168,000. PPI was unable to estimate a fair value of the preferred shares, and the most recent sale of common shares was used to estimate the value of the common share portion of the transaction. PPI wanted to recognize the efforts of a key employee and offered him the opportunity to purchase 420 common shares for $ 44, to be paid by December 31, 2021. The employee accepted the offer and signed a note payable to PPI in the exchange. No interest was to be charged on the outstanding balance; however, the shares were issued immediately Of the 7 subscriptions issued on February 20, five subscriptions were paid in full and two subscribers defaulted. According to the subscription contract, the defaulting subscribers would not be issued shares for any amount that had been paid and no cash would be refunded. PPI declared a dividend of $ 168,000 for 2020. Net income for the year was $ 672,000. Sept. 23 Nov. 28 Dec. 31 Dec. 31 Prepare the journal entries to record the transactions for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) . Date Account Titles and Explanation Debit Credit Jan. 1 No Entry 0 No Entry Jan. 15 Cash 84672 Share Subscriptions Receivable 973728 Common Shares Subscribed 1058400 Feb. 20 Cash 197568 Share Subscriptions Receivable 2272032 Common Shares Subscribed 2469600 Mar. 3 Cash 1774080 Common Shares 1774080 May 10 Cash 14280 Common Shares 14280 Sept. 23 Cash 168000 Common Shares 73920 Preferred Shares 94080 Nov. 28 Notes Receivable 18480 Common Shares 18480 Dec. 31 Cash 1605240 Share Subscriptions Receivable 1605240 (To record collection of subscriptions receivable) Dec. 31 Common Shares Subscribed 1764000 Common Shares 1764000 (To record issuance of shares for fully paid subscriptions) DA NE Dec. 31 Common Shares Subscribed 705600 Share Subscriptions Receivable 649152 Contributed Surplus 56448 (To record forfeit of unpaid ( subscriptions receivable) Dec. 31 Dividends Pavable 2520 Dividends 2520 (To record dividends declared to preferred shareholders) Dec. 31 Dividends Pavable 165480 Dividends 165480 (To record dividends declared to common shareholders) What was amount of the dividend per share declared on December 31? (Round answer to 2 decimal places, eg. 5.25.) Dividend per share $ 165480 e Textbook and Media List of Accounts Your answer is partially correct. Prepare the shareholders' equity section of the SFP as of December 31, 2020. Perfect Ponds Inc. Shareholders' Equity December 31, 2020 Share Capital Common Shares $ Preferred Shares Accumulated Other Comprehensive Income Less Share Subscriptions Receivable Less Note receivable from employee for issued shares Total Share Capital Contributed Surplus Total Paid-in Capital Retained Earnings Total Shareholders' Equity