Pretfred shares,

$1.50 no par value, cumulative

25,000 shares authorized

5,000 shares issued and outstanding

60

Common shares, no par value,

60,000 shares authorized

$300,000

50,000 shares issued and outstanding

10.2

Total contributed capital

510,000

810,000

Retained earnings

Total shareholders' equity

340,000

Instructions

$1,150,000

a) Record the following transactions which occurred consecutively this year. Show all calculations. i. There are no dividends in arrears. A total cash dividend of

$95,000

was declared. The preferred shares are participating to a maximum of

8% Record dividends payable to common and preferred shares in separate account

ii.

5% common stock dividend was declared. The current market value of the common

shares is

$18 a share

iii. Net income for the year was

$250,000 Record the closing entry

b) Incorporating all the above information, constructing the shareholders' equity section of the SFP

Pretfred shares,

$1.50 no par value, cumulative

25,000 shares authorized

5,000 shares issued and outstanding

60

Common shares, no par value,

60,000 shares authorized

$300,000

50,000 shares issued and outstanding

10.2

Total contributed capital

510,000

810,000

Retained earnings

Total shareholders' equity

340,000

Instructions

$1,150,000

a) Record the following transactions which occurred consecutively this year. Show all calculations. i. There are no dividends in arrears. A total cash dividend of

$95,000

was declared. The preferred shares are participating to a maximum of

8% Record dividends payable to common and preferred shares in separate account

ii.

5% common stock dividend was declared. The current market value of the common

shares is

$18 a share

iii. Net income for the year was

$250,000 Record the closing entry

b)Incorporating all the above information, constructing the shareholders' equity section of the SFP