Selected T-accounts for Bacanora Minerals Corporation at December 31, 2014, are duplicated below.

Required
Using the information provided, answer the following questions.
1. What is the total amount of dividends that the preferred shareholders are entitled to receive per year?
2. Are there any dividends in arrears at December 31, 2013? If yes, calculate the dividends in arrears.
3. Calculate total dividends paid during 2014 to the:
a. Preferred shareholders.
b. Common shareholders.
4. During 2014, the company earned a net income of $408,000. Calculate the balance in the Retained Earnings account at the end of 2014.
5. Calculate Total Contributed Capital at the end of 2014.
6. Calculate Total Equity at December 31, 2014.
7. How many more preferred shares are available for issue at December 31, 2014?
8. What was the average issue price per share of the preferred shares at December 31,2014?

Transcribed Image Text:

Preferred Shares, $6 cumulative 10,000 shares authorized 8,000 shares issued Common Shares 50,000 shares authorized 45,000 shares issued 192,000 Dec. 31/13 540,000 Dec. 31/13 Bal Bal 192,000 Dec. 31/14 540,000 Dec. 31/14 Bal Bal. Retained Earnings 126,000 Dec. 3113 Bal 2277 Dec Bal 31/14