Spicer Inc. showed the following alphabetized list of adjusted account balances at December 31, 2020:

Accounts Payable$25,460Accounts Receivable38,900Accumulated depreciation, Equipment10,490Accumulated depreciation, Warehouse20,980Cash8,100Cash Dividends19,300Common Shares109,000Equipment78,100Income Tax Expense40,300Land114,600Notes Payable, due in 202333,300Operating Expenses108,900Preferred Shares38,900Retained Earnings27,420Revenue268,450Warehouse125,800

The company uses an income summary account in the closing process.

Required:

1.Assuming normal balances, prepare the closing entries at December 31, 2020, the company's year-end.

transaction list

• 1
• Record to close the revenue account to the income summary.
• 2
• Record to close the expense accounts to the income summary.
• 3
• Record to close the income summary to retained earnings.
• 4
• Record to close the Cash Dividends account to Retained Earnings.

2.Calculate the post-closing balance in Retained Earnings at December 31, 2020.(Amounts to be deducted should be indicated by a minus sign.)

Selected T-accounts for Jade Mineral Corporation at December 31, 2020, are duplicated below.

Preferred Shares, $6 cumulative

10,000 shares authorized

7,700 shares issued182,490Dec. 31/19 Bal.182,490Dec. 31/20 Bal.

Common Shares,

50,000 shares authorized

45,000 shares issued526,500Dec. 31/19 Bal.526,500Dec. 31/20 Bal.

Retained Earnings123,000Dec. 31/19 Bal.?Dec. 31/20 Bal.

Note:

• Dividends were not paid during 2018 or 2019. Dividends of $4.50 per common share were declared and paid for the year ended December 31, 2020.
• 2018 was the first year of operations.
• All shares were issued in the first year of operations.

Required:

Using the information provided, answer the following questions.

1.What is the total amount of dividends that the preferred shareholders are entitled to receive per year?

2.Are there any dividends in arrears at December 31, 2019? If yes, calculate the dividends in arrears.

3.Calculate total dividends paid during 2020 to the:

a.Preferred shareholders

b.common shareholders

4.During 2020, the company earned profit of $405,000. Calculate the balance in the Retained Earnings account at the end of 2020.

5.Calculate Total Contributed Capital at the end of 2020.

6.Calculate Total Equity at December 31, 2020.

7.How many more preferred shares are available for issue at December 31, 2020?

8.What was the average issue price per share of the preferred shares at December 31, 2020?(Round the final answer to one decimal place.)