Application Problem 11-9A a-c (Part Level Submission) The shareholders' equity of Deer Ltd. at the end of 2020 and 2019 appeared as follows: 2020 2019 $181,300 $181,300 Share capital, preferred shares, $2 cumulative, 2,000,000 shares authorized, 25,900 shares issued Share capital, 5,000,000 common shares authorized, 1,260,000 common shares issued (2019-1,070,000 shares) Retained earnings Total shareholders' equity 5,230,000 4,280,000 4,202,000 3,404,000 $9,613,300 $7,865,300 During 2020, Deer paid a total of $137,200 in cash dividends. (a) Your answer is correct. Assume the preferred shares were not in arrears at December 31, 2019. How was the $137,200 in cash dividends distributed between the two types of shares in 2020? Preferred 2020 $ 51800 Common 85400 Total 137200 SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 1 of 2 used (b) Your answer is correct. Assume the preferred share dividends were in arrears for one year; that is, the dividends were not paid in 2019. How was the $137,200 in cash dividends distributed between the two classes of shares? Preferred Common Total 2019 arrears 51800 . 51800 2020 8 5400 51800 103600 33600 33600 SHOW LIST OF ACCOUNTS LINK TO TEXT ZYour answer is partially correct. Try again. Both common shares and retained earnings changed during the year. Provide journal entries that would account for the changes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account and explanation Debit Credit 1. Cash 33600 Common Shares 33600 (common shares issued during year) 2. Dividends Declared 137200 Dividends Payable (Dividends declared during year) 3. Dividends Payable Cash (Dividends paid during year) 4. Income Summary 660800 660800 Retained Earnings (Net income for the year closed to retained carnings) 5. Dividends Declared Retained Earnings 137200 (Dividends Declared for the year closed to retained earnings)