Q7. Camlin Inc. Partial Balance Sheet December 31, 2015 Shareholders' Equity $ 150,000 300,000 Contributed Capital: Preferred shares, $1.00, 100,000 shares authorized, 20,000 shares issued (liquidation value $ 90,000) Common shares, class A unlimited number of shares authorized, 100,000 shares issued Common shares, class B 40,000 of shares authorized, 20,000 shares issued Total contributed capital Retained earnings Total shareholders' equity 100,000 550,000 280.000 $830,000 Assume that the preferred shares are not cumulative and that there have been no dividends declared in 2013, and 2014. Prepare the journal entry to record the following transactions 2015 Dec 3- Declaration and payment of a dividend in the total amount of $130,000. Use separate dividends payable accounts for preferred and common shares. Dec 31 - reported net income of $180,000 2016 Feb 28 - Issued 20,000 class B common shares at $6 per share. Mar 1-Paid the cash dividend declared Apr 1 - Declared a 10% stock dividend on the class A common shares, the market value of share was $5 per share. May 2 - distributed stock dividend declared above. July 4 - Repurchased 15,000 of class B common shares at $7 per share. Sept 2 - Split the class A common shares 2 for 1 Dec 3 - Declaration and payment of a dividend in total amount of $ 250,000. Dec 31 - Reported net income of $550,000 Record the transactions and prepare Shareholders' Equity section for the year December 2016. Calculate Book value of Common shares and preferred shares. Q7. Camlin Inc. Partial Balance Sheet December 31, 2015 Shareholders' Equity $ 150,000 300,000 Contributed Capital: Preferred shares, $1.00, 100,000 shares authorized, 20,000 shares issued (liquidation value $ 90,000) Common shares, class A unlimited number of shares authorized, 100,000 shares issued Common shares, class B 40,000 of shares authorized, 20,000 shares issued Total contributed capital Retained earnings Total shareholders' equity 100,000 550,000 280.000 $830,000 Assume that the preferred shares are not cumulative and that there have been no dividends declared in 2013, and 2014. Prepare the journal entry to record the following transactions 2015 Dec 3- Declaration and payment of a dividend in the total amount of $130,000. Use separate dividends payable accounts for preferred and common shares. Dec 31 - reported net income of $180,000 2016 Feb 28 - Issued 20,000 class B common shares at $6 per share. Mar 1-Paid the cash dividend declared Apr 1 - Declared a 10% stock dividend on the class A common shares, the market value of share was $5 per share. May 2 - distributed stock dividend declared above. July 4 - Repurchased 15,000 of class B common shares at $7 per share. Sept 2 - Split the class A common shares 2 for 1 Dec 3 - Declaration and payment of a dividend in total amount of $ 250,000. Dec 31 - Reported net income of $550,000 Record the transactions and prepare Shareholders' Equity section for the year December 2016. Calculate Book value of Common shares and preferred shares