Raiders Corp. has the following capital structure at the beginning of 2020:

Preferred shares, $ 3, no par value, non-cumulative, 20,000 shares authorized,

6,000 shares issued and outstanding$ 300,000

Common shares, no par value, 60,000 shares authorized,

40,000 shares issued and outstanding510,000

Total contributed capital810,000

Retained earnings340,000

Total shareholders' equity$ 1,150,000

Net income for the year is $225,000.

Instructions

Record the following transactions which occurred in the year ending December 31,2020. Show all calculations.

a)There are no dividends in arrears. A total cash dividend of $ 90,000 was declared. The preferred shares are

participating to a maximum of 10%. Record dividends payable to common and preferred shares in separate accounts.

b)A 10% common stock dividend was declared and distributed. The market value of the common

shares are $ 16 per share.

c)Incorporating all the above information and transactions, present the revised shareholders' equity as of

December 31, 2020.