Please help with and explain requirements 4 and 5. I will give you a thumbs up if you're able to help out!
Ironman Security Inc. included the following shareholders' equity on its balance sheet at December 31, 2020: (Click the icon to view the partial balance sheet.) Requirements 1. Identify the different issues of shares Ironman Security has outstanding. 2. What was the value at which the $2.00 Cumulative Preferred Shares were issued? 3. Suppose Ironman decided not to pay its preferred dividends for one year. Would the company have to pay these dividends in arrears before paying dividends to the common shareholders? Why? 4. What amount of preferred dividends must Ironman declare and pay each year to avoid having preferred dividends in arrears? 5. Assume preferred dividends are in arrears for 2019. Journalize the declaration of a $80,000 cash dividend for 2020. No explanation is needed. Partial balance sheet Shareholders' Equity ($ Millions) Preferred Shares: $ 255,000 Authorized 40,000 shares in each class: $8.00 Cumulative Preferred Shares, 3,000 shares issued $2.00 Cumulative Preferred Shares, 4,500 shares issued Common Shares: Authorized 120,000 shares, issued 48,700 shares 67,500 243,500 521,000 Retained earnings $ 1,087,000 Total Shareholders' Equity.. Requirement 1. Identify the different issues of shares Ironman Security has outstanding. (Select all that apply.) A. Common Shares B. Cumulative Common Shares C. $8.00 Non-cumulative Preferred Shares D. $2.00 Cumulative Preferred Shares E. $2.00 Non-cumulative Preferred Shares OF $8.00 Cumulative Preferred Shares Requirement 2. What was the value at which the $2.00 Cumulative Preferred Shares were issued? Ironman Security issued the $2.00 Cumulative Preferred Shares at $ per share. Requirement 3. Suppose Ironman passed its preferred dividends for one year. Would the company have to pay these dividends in arrears before paying dividends to the common shareholders? Why? Ironman have to pay preferred dividends in arrears before paying dividends to the common shareholders because the preferred shares are Requirement 4. What amount of preferred dividends must Ironman declare and pay each year to avoid having preferred dividends in arrears? Ironman must declare and pay preferred dividends of $ each year to avoid having preferred dividends in arrears. Requirement 5. Assume preferred dividends are in arrears for 2019. Journalize the declaration of a $80,000 cash dividend for 2020. No explanation is needed. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit IIII. Requireme ative Preferred Shares were issued Ironman SE Sat $ per share. Requireme Cash these divide Common Shares Ironman ds for one year. Would the compan on shareholders? Why? before paying dividends to the com because th Dividends Payable, Common man declare and pay each year to a Requireme Dividends Payable, $8.00 Preferred preferred d Dividends Payable, $2.00 Preferred Ironman mi 1 year to avoid having preferred divi Requireme Preferred Shares dividend fol Retained Earnings Date 2019. Journalize the declaration of rst, then credits. Explanations ar Debit Credit
