VishalMinhas300177000 CH2

1. Cumulative. SInce the description of preferred shares in the balance sheet extract presented in the question expressly contains the word cumulative after Preferred shares, it can be said that Xiong inc's shares are cumulative. 2 DIvidend to Preferred share holders $1,125 Dividend to common share holders $15,875 working; SInce there are no dividends in arrears, only annual dividend is to be paid to preferred stock holders => $0.025 per share dividend *45,000 issued and outstanding preferred shares =>$1,125. Dividend to common shareholders = total cash dividends - dividends to preferred stock holders =>$17,000 - 1,125 =>15,875. 3.. Since preferred dividends are not paid for 2018, 2019 , 2020, i,e 3 years Preferred dividend to be paid in 2020 => ($0.025 * 45,000 shares)* 3 years=>$3,375. Dividends to be paid to common stock holders = $17,000 - 3,325 =>$13,625. Annual preferred dividends = $3 per share *11,000 shares =>$33,000. Three years arrears value of preferred dividend = $33,000 * 3 years =>$99,000. calculation of book value per share of preferred shares; Preferred shares 605000 Add;preferred dividends in arrears 99000 Total book value attributable to preferred shares $704,000 Book value per share of preferred share ($704,000/11,000 shares) $64 calculation of book value per share of Common shares. Total share holders equity 4555000 less; book value attributable to preferred shares -704000 Book value attributable to common shares $3,851,000 Book value per share of common shares ($3,851,000/75,000 shares) $51.35. PARTICULARS 1 CASH/BANK A/C 56000 TO ACC RECIEVABLE 56000 (BEING ACCOUNTS RECIEVABLE TO BE RECIEVED 2 SALARY EXPENSE A/C 199000 TO CASH/BANK 199000 (BEING SALARY PAID) 3 SALARIES A/C 3400 TO OUTSTANDING SALARIES 3400 4 INTEREST EXPENSE A/C 18800 TO CASH/BANK 18800 (BEING INTEREST PAID) 5 CASH/BANK A/C 5800 TO INTEREST REVENUE 5800 (BEING INTEREST RECEIVED) 6 AMORTISATION EXP 14000 TO ACC EXPENSE 1800 TO CASH/BANK 12200 (BEIN EXPENSES AMORTISED) 7 CASH /BANK A/C 356400 TO SALES 356400 8 CASH/BANK A/C 5400 TO UNEARNED REV 5400 (BEING UNEARNED REVENUE RECEIVED) 9 OTHER EXPENSES A/C 35400 TO CASH/BANK 35400 (BEING EXPENSES PAID) RETAINED EARNING BALANCE- 185,600 JOURNAL ENTRIES FOR SHAHIDI CORPORATION CONTRIBUTED CAPITAL DATE PARTICULARS DEBIT CREDIT COMMON STOCK 49500 43849 CASH 49500 CLASS A PREFERRED STOCK 1500 TO COMMON STOCK 49500 ADD. ADDITIONAL PAID IN EXCESS VALUE OF PAR 13500 15000 (BEING SHARED ISSUED) COMMON STOCK 37000 CLASS B PREFERRED STOCK 3000 43864 CASH 15000 ADD. ADDITIONAL PAID IN EXCESS VALUE OF PAR 39000 42000 TO PREFFERED STOCK(CLASSA)(1000*1.5) 1500 TOTAL CONTRIBUTED CAPITAL 143500 TO ADDITIONAL PAID IN CAPITAL(EXCESS OF PAR) 13500 (SALE OF PREFFERED SHARES) 43872 INVENTORY 20000 VEHICLES 17000 TO COMMON STOCK 37000 43905 CASH 42000 TO CLASS B PREFERRED STOCK(3000*1) 3000 TO ADDITIONAL PAID IN CAPITAL (EXCESS OF PAR) 39000 (BEING PREFERRED STOCK ISSUED) Dec. 4: Issued 5,000 common shares to the consultants who formed the corporation, receiving cash of $140,000 Date Accounts Debit Credit Dec. 4 Cash $140,000      Common Shares                     $140,000 Dec. 13: Issued 500 preferred shares for cash of $55,000 Date Accounts Debit Credit Dec. 13 Cash $55,000      Preferred Shares       $55,000       Dec. 14: Issued 4,000 common shares in exchange for land valued at $120,000 Date Accounts Debit Credit Dec. 14 Land $120,000      Common Shares       $120,000       Nov. 30: Earned a profit for the fiscal year and closed the $120,000 net income into Retained Earnings. Date Accounts Debit Credit Nov. 30 Income summary $120,000         Retained earnings $120,000 Plum Corp. Shareholders' Equity November 30, 2020 Contributed capital    Preferred shares, $5, 100,000 shares authorized         500 shares issued $55,000    Common shares, 500,000 shares authorized         9,000 shares issued                    [5,000 shares issued on Dec. 4 + 4,000 shares issued on Dec. 14] $260,000 [$140,000 + $120,000] Total contributed capital              [$55,000 + $260,000] $315,000 Retained Earnings                                                                        $120,000 Total Shareholders' Equity          [$315,000 + $120,000]                      $435,000 ASSETS CURRENT ASSETS 494000 CASH 318000 ACCOUNTS RECIEVABLE 420000 INVENTORY 3600 PREPAID EXPENSES TOTAL ASSETS 1235600 FIXES LONG TERM ASSETS LONG TERM INVESTMENTS PROPERT, PLANT, EXQUIPMENT 3360000 INTANGIBLE ASSETS 20400 TOTAL FIXED ASSETS 3380400 OTHER ASSETS DEFERRED TAX INCOME OTHER 18000 TOTAL OTHER ASSETS 18000 LIABILTIES AND OWNER EQUITY CURRENT LIABILTIES ACCOUNT PAYABLE 90000 ACCRUED LIABILTIES 50400 140400 LONG TERM LIABILTIES LONG TERM NOTE PAYABLE 600000 TOTAL LONG TERM LIABILITIES 600000 OWNERS EQUITY COMMON SHARES ISSUED 2500000 PREFERRED SHARES 240000 RETAINED EARNINGS 1153600 3893600 TOTAL LIABILITES AND OWNER EQUITY 4634000