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In each of the following independent cases, it is assumed that the corporation has outstanding 20,000, 50,80, preferred shares, with a carrying value of $200,000, and 80,000 common shares, with a carrying value of $800,000. Athough dividends have been paid regularly up to 200, no dividends were declared in 201 or 202. 1. At December 31,203, the board of directors wants to distribute 5125,000 in dividends. How much will the common and preferred sharehiolders recelve if the preferred shares are cumulative and non-participating? 2. At December 31,203, the board of directors wants to distribute $200,000 in dividends. How much will the common and preferred shareholders recelve if the preterred shares are cumulatve and participating up to 15% in total? 3. On December 31, 20x3, the preferred shareholders received an $80.000 dividend on their shares, which are cumulative and fully parucipating. How much mueney was distributed in total for dividends? 5908,722. On January 2, 2024, ABC offered to buy back the bonds at 103. Forty percent of the bondholders accepted the offer. Davis uses the effective interest method of amortiving premium or discount. Required a) Prepare the journal entry to record the bond issuance. b) Prepare the adjusting entry at December 31, 2022, the end of the fiscal year. c) Prepare the entry for the interest payment on january 1, 2023. d) Prepare the entry to record the retirement of the bonds on january 2, 2024

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