The balance sheet of Tulameen Systems Inc. reported the following on December 31, 2021:

Shareholders Equity
Preferred shares, cumulative, authorized 25,000 shares, issued 10,000 shares	$200,000
Common shares, authorized 50,000 shares, issued 44,000 shares	528,000
Retained earnings	168,000
Total shareholders equity	$896,000

Notes to the financial statements indicated that 10,000, $1.2 preferred shares were issued and outstanding. The preferred shares have a liquidation value of $24 per share. Preferred dividends have not been paid in 2020, neither in the current year of 2021.

Required

1. Are the preferred shares cumulative or noncumulative? What does it mean?
2. How much dividend per share will the preferred shareholders receive each year (if dividends are declared)?
3. Which group of shareholders has voting rights and therefore control the company?
4. What is the total contributed capital of the company on Dec 31, 2021?
5. Compute the preferred equity on Dec 31, 2021.
6. Compute the book value per share of the preferred shares.
7. Compute the book value per share of the common shares.
8. Assume that Tulameen declared $50,000 cash dividend on Dec 31, 2021. How much dividends will be received by the preferred and common shareholders, respectively? Prepare the journal entry to record this declaration of dividends.