HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On...

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HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On Dec 31, 2018, the company had 50

The Total Shareholders Equity at end of year was: Year 2018 Choose... Year 2019 Choose... Amount of Cash Dividend Distribute

Journal Entry for Stock Dividend will be: Choose... e Choose... What is the balance on Common Shares and how many common shar

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Answer 1

Answer #1

The total Shareholder's Equity at end of year was:

year 2018	150000
year 2019	172250		150000 + (50002.80) + (5500010%)*1.5


Amount of Cash Dividend Distributed to Shareholders
Preferred Shares:
Dollar per share	3.94		Actual Preference Dividend due $2 *3 = $6 per PS
Total cash dividend	82750		21000*3.94 (first preference to Common Stock)
Total value of stock dividend	0

Common Shares:
Dollar per share	0
Total cash dividend	0
Total value of stock dividend	8250		(5500010%)1.5


Journal entry for Cash Dividend will be:
Account Titles	Dr. $	Cr. $
Retained Earnings	82750
Cash Dividend payable		82750

Journal entry for Stock Dividend will be:
Account Titles	Dr. $	Cr. $
Retained Earnings	8250
Stock Dividend distributable		8250


Contributed Capital for Common Shares	172250
Common Shares issued and Outstanding	60500		55000+5500

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Answer 2

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