Gru-Mart Ltd. has 2,000,000 Common shares, issued and outstanding. They also have 200,000 $1 Preferred shares that

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Question:

Gru-Mart Ltd. has 2,000,000 Common shares, issued and outstanding. They also have 200,000 $1 Preferred shares that are cumulative.

They have not paid dividends in 2018 and 2019, but are ready to pay dividends in 2020, in the total amount of $2,900,000.

Calculate and show how much each type of share (per share and in total) will receive, and record the dividend declaration and payment as two journal entries on December 15, 2020

Part B:

Robin-Mart Ltd. has 500,000 Common shares, issued and outstanding. They also have 100,000 $6 Preferred shares that are non-cumulative.

They have not paid dividends in 2018 and 2019, but are ready to pay dividends in 2020, in the amount of $2,300,000.

Calculate how much each type of share (per share and in total) will receive, and record the dividend declaration and payment as two journal entries on December 15, 2020