question 2

Hanson Bank agrees to lend $ 250,000 to Mishin Corp. on May 1, 2020 and the company signs a $ 250,000, three-month, 6% note maturing on August 1, 2020.

Instructions

Prepare the journal entry to record the cash received by Mishin Corp. on May 1, the entry to record interest expense at Mishins year-end of July 31 and the entry at maturity of the note.

Question # 3

Dividends on preferred shares

At December 31, 2020, Russia Inc. has outstanding the following shares:

5,000, $ 3.20, no par value preferred shares with a carrying value of $ 200,000, and 40,000 no par value common shares with a carrying value of $ 600,000.

No dividends have been paid since December 31, 2017. The corporation now desires to distribute $ 120,000 in dividends.

Instructions

Calculate how much the preferred and common shareholders will receive if the preferred shares are cumulative and fully participating.