Question 9 [15 points]

CanTech Supply's year-end is December 31, 2015. At that time the ledger showed the following balances:

Preferred Shares, $6 cumulative participating, 300,000 shares authorized, 25,000 shares issued	1000000
Common Shares 200,000 shares authorized, 50,000 shares issued	1600000
contributed surplus (from previous cancellation common shares)	1350000
Retained Earnings	2457000
The preferred shares participate in distributions when the common shares receive in excess of a $4 dividend per share

Answer the following independent questions. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). a) Answer the following independent questions. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). a) Calculate the amount of cash required to pay a cash dividend of $5 to the common shareholders, if dividends have not been paid in 2013 or 2014. Please make sure your final answer(s) are accurate to the nearest whole number.

	Preferred	Common	Total
Total dividends for 2015

b) Record the entry for the declaration of the 15% common share dividend when the share's post-dividend market value is $125. Please make sure your final answer(s) are accurate to 2 decimal places.

c) Record the entry to record the purchase and cancellation of 10,000 common shares on December 31, 2015 when the current market value is $125 per share. Please make sure your final answer(s) are accurate to 2 decimal places.