Q2)

Type or paste question here

The shareholders' equity section of Khan Corporation's balance sheet at January 1, 2020 was as follows. Both preferred shares and common shares have no par value. Khan Corporation Balance Sheet (partial) As at January 1, 2020 Shareholders' Equity Contributed Capital Preferred Shares, $3 noncumulative, 240,000 authorized, 2.400, issued and outstanding $211,000 Common Shares, unlimited authorized, 27,000 issued and outstanding $1,160,000 Total Contributed Capital $1,160,000 Retained Earnings $295,000 Total Shareholders' Equity $1,455,000 No dividend was declared for common shareholders. However on December 15, 2020, the directors decided to pay dividends to preferred shareholders. The dividend payment date was December 28, 2020. Income before income tax for the year was $210,000. Income tax expense for the year was $42,000. The company uses the retained earnings account to record dividends. Do not enter dollar signs or commas in the input boxes. a) Calculate the amount of dividend to be paid to preferred shareholders. Dividends Payable: S b) Prepare journal entry for declaration and payment of preferred dividend. Date Account Title and Explanation Debit Credit Dec 15 Retained Earnings Dividends Payable Dividend payable on preferred shares Dec 28 Dividends Payable Cash Recording payment of dividend c) Calculate the ending balance of retained earnings for the year ended December 31, 2020. Do not use the negative sign. Khan Corporation Statement of Retained Earnings For the Month Ended December 31, 2020 Opening Balance Add: Net Income Less: Cash Dividends Balance - December 31, 2020 On November 1, 2020, Tasty Mice Inc. declared $180,000 of dividends payable to shareholders on November 15, 2020. There are 28,900 common shares and 2.900, $5 cumulative preferred shares. No new shares were issued during the year and dividends were last declared in 2017. Tasty Mice Inc. had retained earnings of $2,348,000 at the beginning of 2020 and earned a net income of $723,000 during the year. Write the journal entry to record the declaration and subsequent payout of the dividends on November 28, 2020 The company uses the cash dividends account to record dividends. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole dollar. For transactions that have 2 debits or credits, enter the accounts in alphabetical order Date Account Title and Explanation Debit Credit Nov 1 Cash Dividends-Common Cash DividendsPreferred, cumulative Dividends Payable 180000 Record dividend payable Nov 28 Dividends Payable 180000 Cash 180000 Record payment of dividend declared on Nov 1