Question 1 Brewster's was incorporated on October 1, 2020. The articles of incorporation indicated the company...

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Question 1 Brewster's was incorporated on October 1, 2020. The articles of incorporation indicated the company was authorized to issue 800,000 shares of no par value common shares and 300,000, $3 preferred shares that are cumulative and participating in distributions in excess of 5% of a dividend rate on the common shares. The company's year-end is September 30. The following information relates to the company's shareholders' equity account. 1. 60,000 common shares issued for cash on October 1, 2020, at $80 per share. 2. 20,000 $3 preferred shares were issued on October 1, 2020 at $100 per share. 3. 10,000 common shares exchanged on Dec 15, 2020, for land in the downtown core. The land had originally cost the seller $400,000 and had an estimated fair value of $650,000 on Dec 15, 2020 when Burlington's share were selling for $78. 4. 10,000 common shares issued on June 1, 2021; the shares had been subscribed for $75 per share on October 31, 2020. 5. October 1, 2022: subscriptions were received for 8,000 common shares at $82 per share. The first installment of $200,000 was received on this date and the final installment was paid on September 30, 2023. 6. November 1, 2022, the company purchased 4,000 of its common shares at $78 per share and restored these shares to the status of authorized but unissued. 7. Feb 15, 2023: the company declared a 5% stock dividend for shareholders of record on November 1, 2023. The company was short on cash and therefore could not pay a cash dividend. The company's shares were selling at $77 per share on Feb 15, 2023. 8. March 15, 2023: the company sold 10000 common shares for $650,000. 9. Dividends: Burlington did not declare any dividends until September 30, 2023. At that date total dividends of $700,000 were declared. 10. The company incurred the following profits (loss) since incorporation: 2021 2022 (20,000) 650,000 2023 900,000 Required: a) Determine the amount of dividends received by preferred and common shareholders from the September 30, 2023 declaration. b) Prepare the journal entries fox 2022-23 fiscal year. c) Prepare the statement of changes in equity and the shareholders' equity section of the balance sheet for September 30, 2023. Question 1 Brewster's was incorporated on October 1, 2020. The articles of incorporation indicated the company was authorized to issue 800,000 shares of no par value common shares and 300,000, $3 preferred shares that are cumulative and participating in distributions in excess of 5% of a dividend rate on the common shares. The company's year-end is September 30. The following information relates to the company's shareholders' equity account. 1. 60,000 common shares issued for cash on October 1, 2020, at $80 per share. 2. 20,000 $3 preferred shares were issued on October 1, 2020 at $100 per share. 3. 10,000 common shares exchanged on Dec 15, 2020, for land in the downtown core. The land had originally cost the seller $400,000 and had an estimated fair value of $650,000 on Dec 15, 2020 when Burlington's share were selling for $78. 4. 10,000 common shares issued on June 1, 2021; the shares had been subscribed for $75 per share on October 31, 2020. 5. October 1, 2022: subscriptions were received for 8,000 common shares at $82 per share. The first installment of $200,000 was received on this date and the final installment was paid on September 30, 2023. 6. November 1, 2022, the company purchased 4,000 of its common shares at $78 per share and restored these shares to the status of authorized but unissued. 7. Feb 15, 2023: the company declared a 5% stock dividend for shareholders of record on November 1, 2023. The company was short on cash and therefore could not pay a cash dividend. The company's shares were selling at $77 per share on Feb 15, 2023. 8. March 15, 2023: the company sold 10000 common shares for $650,000. 9. Dividends: Burlington did not declare any dividends until September 30, 2023. At that date total dividends of $700,000 were declared. 10. The company incurred the following profits (loss) since incorporation: 2021 2022 (20,000) 650,000 2023 900,000 Required: a) Determine the amount of dividends received by preferred and common shareholders from the September 30, 2023 declaration. b) Prepare the journal entries fox 2022-23 fiscal year. c) Prepare the statement of changes in equity and the shareholders' equity section of the balance sheet for September 30, 2023.