Tricor, Corp. was incorporated on January 20, 2015. During 2015, Tricor had the following transactions related to

Question:

Tricor, Corp. was incorporated on January 20, 2015. During 2015, Tricor had the following transactions related to share capital:
1. Issued 300,000 common shares for $3 million.
2. Issued 20,000 cumulative preferred shares for $25 per share, distributing $1.50 per share.
3. Tricor showed a $35,000 net loss.
Requirements
1. Prepare journal entries.
2. Prepare the shareholders' equity section of the statement of financial position at December 31, 2015.
3. Assuming that you are a preferred shareholder, would you expect to receive a in 2015? Explain.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...