Problem 1: The following information appears in the books of KN Corporation: Share Capital, par $100 $6,000,000 Subscribed Share Capital 2,000,000 Share Premium 1,000,000 Retained Earnings 2,000,000 Treasury Shares (1,000 shares) 550,000

The Board declared a cash dividend of $15 per share on November 15, 2019 to shareholders of record as of December 15, 2019, payable on January 10, 2019 Direction: a) How many shares are entitled to dividends? b) Entries for the above transactions. c) How much is free retained earnings?