The following is the shareholders equity section of Flint Corp. at December 31, 2017: Preferred shares,a authorized 120,000 shares; issued 40,000 shares $ 1,080,000 Common shares (unlimited authorized, 65,000 issued) 1,950,000 Contributed surplus 102,000 Total paid-in capital 3,132,000 Retained earnings 2,279,200 Total shareholders equity $ 5,411,200 a The preferred shares have a $2 dividend rate, are cumulative, and participate in distributions in excess of a $3 dividend on the common shares. No dividends were paid in 2015 or 2016. On December 31, 2017, Flint wants to pay a cash dividend of $4 per share to common shareholders. How much cash would be needed for the total amount to be paid to preferred and common shareholders?
The following is the shareholders equity section of Flint Corp. at December 31, 2017: | Preferred shares,a authorized 120,000 shares; issued 40,000 shares | | $ | 1,080,000 | | Common shares (unlimited authorized, 65,000 issued) | | | 1,950,000 | | Contributed surplus | | | 102,000 | | Total paid-in capital | | | 3,132,000 | | Retained earnings | | | 2,279,200 | | Total shareholders equity | | $ | 5,411,200 | a The preferred shares have a $2 dividend rate, are cumulative, and participate in distributions in excess of a $3 dividend on the common shares. | | |  |
 | No dividends were paid in 2015 or 2016. On December 31, 2017, Flint wants to pay a cash dividend of $4 per share to common shareholders. How much cash would be needed for the total amount to be paid to preferred and common shareholders? (Round excess return percentage to 2 decimal places, e.g. 52.75% and final answer to 0 decimal places, e.g. 5,275.) | | | Preferred | | Common | | Total | | Amount to be paid to shareholders | | $ 
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 | The company decides instead that it will declare a 20% stock dividend on the outstanding common shares. The common shares fair value on the date of declaration is $40 per share. Prepare the entry on the date of declaration. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) | Account Titles and Explanation | Debit | Credit | | 
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 | The company decides instead to acquire and cancel 10,800 common shares at the current fair value of $40 per share. Prepare the entry to record the retirement, assuming the contributed surplus balance arose from previous cancellations of common shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) | Account Titles and Explanation | Debit | Credit | | 
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