The following share capital information is available for a corporation with an April 30, 2022 year-end: The shares were issued when the corporation began operations on May 1, 2015. No dividends were declared during the fiscal years ended 2020 and 2021. On February 28, 2022, the board of directors declared the required preferred share dividends and a $0.85 dividend for each of the common shares. The dividends are payable on April 1, 2022, to the shareholders of record on March 15, 2022.

Preferred shares, $3.00 cumulative, 29,000 shares issued		$1,000,000
Preferred shares, $3.75 noncumulative, 12,000 shares issued		600,000
Common shares, 160,000 shares issued		880,000

How much will be paid to each class of shares?

Year		Cumulative Preferred		Non-cumulative Preferred		Common
2020		$		$		$
2021		$		$		$
2022		$		$		$

eTextbook and Media

List of Accounts

Question Part Score

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Prepare journal entries on the appropriate dates for the 2022 dividends. (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.)

Date	Account Titles and Explanation	Debit	Credit
Feb. 28, 2022	Cash Dividends - CommonSalaries PayableDividends PayableCash Dividends - PreferredPrepaid ExpensesCashSalaries ExpenseOffice Expense
	CashCash Dividends - PreferredSalaries PayableDividends PayableOffice ExpensePrepaid ExpensesCash Dividends - CommonSalaries Expense
	Salaries ExpenseDividends PayablePrepaid ExpensesSalaries PayableCashCash Dividends - PreferredOffice ExpenseCash Dividends - Common
	CashCash Dividends - CommonSalaries PayableCash Dividends - PreferredDividends PayableOffice ExpenseSalaries ExpensePrepaid Expenses
April 1, 2022	Prepaid ExpensesSalaries PayableCashCash Dividends - PreferredCash Dividends - CommonDividends PayableSalaries ExpenseOffice Expense
	Cash Dividends - PreferredDividends PayableOffice ExpenseSalaries ExpenseCashCash Dividends - CommonSalaries PayablePrepaid Expenses

eTextbook and Media

List of Accounts

Question Part Score

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Assume instead that the maximum cash dividend the company can pay is $383,000. Determine how much will be paid to the preferred shareholders and to the common shareholders.

Year		Cumulative Preferred		Non-cumulative Preferred		Common
2022		$		$		$