(a) netjet ltd. has the following shares outstanding since its initial share offering:

30,000 shares of $2.00 cumulative preferred shares

60,000 common shares issued at $10 each

the board of directors has declared the following dividends:

2016 none

2017 $50,000

2018 $80,000

2019. $150,000

2020. $260,000

prepare all journal entries on the date of declaration for each year? (hint: 2016 to 2020, 5 entries,5%)

B) independent from (a) above , given the following data for jitney calculate the book value of a common share. (2.5%)

share capital:

preferred shares 30,000 shares authorized,

7,500 shares issued. $525,000

common shares,200,000 shares authorized,

105,000 shares issued 682,500

total share capital $1,207,500

retained earnings 200,000

total shareholders equity $1,407,500

c) continue with information given for jitney above , calculate the book value of a common shares if the preferred shares are $5 cumulative and have two years worth of dividend

outstanding . (2.5%)

Answer rating: 100% (QA)

a Prepration of Jounral entries DATE 2016 ACCOUNTS TITLE AND EXPLANATION Dr Dividend Cr Dividend Pay... View the full answer