The following share capital information is available for a corporation with an April 30, 2018 year-end: The
Question:
The following share capital information is available for a corporation with an April 30, 2018 year-end:
The shares were issued when the corporation began operations on May 1, 2015. No dividends were declared during the fiscal years ended 2016 and 2017. On February 28, 2018, the board of directors declares the required preferred share dividends and a $0.55 dividend for each of the common shares. The dividends are payable on April 1, 2018, to the shareholders of record on March 15, 2018.
Pref Shares, $2.50 cumulative, 2400 shares issued 1,000,000
Pref Shares, $3.00 non-cumulative, 13,000 shares issued 600,000
Common Shares, 150,000 shares issued 367,500
a) How much will be paid to each class of shares?
b) Prepare journal entries on the appropriate dates for the 2018 dividends.
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow