Question $6(16$ Marks$)$ Parts A and Part B below are two independent questions.

Part A $(12$ marks$)$

Dr$.$ Smith started Biotech Inc. $($BTE$).$ on October $1,2023.$ On October $1,2023,$ BTE issued $100$ common shares to Dr$.$ Smith in exchange for $$10,000$ in cash. Also, the following events occurred in December $2023.$

a$)$ On December $1,2023,$ BTE borrowed $$1,200,000,5-$year loan, bearing $7\%$ interest..

b$)$ On December $10,2023,$ BTE issued $1000$ preferred Class A shares to investors for $$600$ each. The articles of incorporation $($charter$)$ disclosed that the Class A$,$ non$-$cumulative preferred shares had a stated value of $ $250$ per share.

c$)$ On December $28,2023,$ BTE declared and paid a $5\%$ stock dividend on the common shares The market value of the common shares before the announcement of the stock dividend was $ $850$ per share.

d$)$ On December $30,2023,$ BTE paid a dividend to the common shareholders of record of $$50$ per share.

Required:

Please prepare the necessary journal entries for the above transactions above as well as any adjusting entries required at the year$-$end date December $31,2023.$ Narratives are not required.

Date Account Debit Credit

$10/1/2023$

$12/1/2023$

$12/10/2023$

$12/28/2023$

$12/30/2023$

$12/31/2023$

Question $6($continued$)$ Part B$.(4$ marks$).$

In addition to common shares outstanding, Essex Corporation has the following preferred shares outstanding at the end of $2023,$ as indicated in the following table.

Preferred shares Number of shares Total dividends

$$25$ stated value, $8\%,$ non$-$cumulative

$1000$ shares

$$100$ stated value, $7\%$ cumulative, convertible

$2500$ shares

Required: $($Need not show calculations$)$

$1.$ Indicate the amount of annual dividend on each issue of the preferred shares by completing the last column of the above table $(2$ marks$)$

$2.$ Assume that there are one year of dividends in arrears at the beginning of $2023,$ and Essex declared total dividends of $$40,000$ in $2023.$ What is the amount of dividends that the common shareholders will receive in $2023?(2$ marks$)$: