Show 1) Work & entries Baker Company plans to declare a cash dividend on June 30, 20X3. clare a cash dividend on June 30, 20x5. The stockholders' equity consists of the following accounts at that date: Preferred shares Dividend rate Par value Number of shares authorized 24,000 Number of shares issued 16,000 Number of shares outstanding 16,000 5% Common shares Par value Number of shares authorized Number of shares issued Number of shares outstanding 200,000 120,000 120,000 Retained earnings $ 580,000 4 Dividends have not been paid for the past years. The following amounts are being considered for the cash dividend declaration: $ 60,000 $ 100,000 $ 140,000 REQUIRED: For each of the dividend declaration amounts (above) being considered: a) Determine the amount of dividends that will be distributed to the preferred and common shareholders if the preferred stock is cumulative and nonparticipating. b) Determine the amount of dividends that will be distributed to the preferred and common shareholders if the preferred stock is noncumulative and nonparticipating. c) Determine the amount of dividends that will be distributed to the preferred and common shareholders if the preferred stock is cumulative and fully participating. 2) JIUCKMULDERS' EQUITY DILUTIVE SECURITIES Montague Company issued 10-Vear convertible bonds on July 1, 20x5, as follows: nowwork Entries Par value of bonds $ 1,200,000 Stated interest rate 5% Issuance price of bonds 104 plus accrued interest Bonds are dated March 1, 20x5 Interest payable semiannually March 1 and September 1 Amortization method used Straight-line On September 1, 20x7, bonds were converted into 20,000 shares of $15 par value common stock. Accrued interest was paid in cash at the time of the conversion, Percentage of outstanding bonds converted: 60% REQUIRED: a) Determine the amount of interest expense reported on the income statement for the year ended December 31, 20x5. b) Using the book value method, prepare the entry(ies) to record the bond conversion on September 1, 20x7. (Assume the entry to record the interest payment and amortization has already been made.) 3) Sherwood, Inc. issued bonds with detachable stock warrants, as follows: Par value of bonds $ 2,000,000 Stated interest rate on bonds 4% Two detachable stock warrants are issued with each $1,000 bond sold. At issuance, the bonds sold for $ 1,860,000 At issuance, the value of the bonds without the warrants: 1,536,000 At issuance, the value of the warrants: 384,000 REQUIRED: a) Determine the amount debited to the Discount on Bond Payable account at the time of issuance. b) Determine the amount credited to the Paid-in Capital - Stock Warrants account at the time of issuance