Tricor, Corp. was incorporated on January 20, 2014. During 2014, Tricor had the following transactions related to

Question:

Tricor, Corp. was incorporated on January 20, 2014. During 2014, 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, with $1.50 dividend per share.

3. Tricor showed a $35,000 net loss.

Requirements

1. Prepare journal entries.

2. Prepare the shareholders’ equity section of the balance sheet at December 31, 2014.

3. Assuming that you are a preferred shareholder, would you expect to receive a dividend in 2014? Explain.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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...