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Springs and Sponges commenced operations on January 1st, 2021, with authorized share capital comprised 600,000...

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Springs and Sponges commenced operations on January 1st, 2021, with authorized share capital comprised 600,000 ordinary shares of $2.75 each and 300,00010% preference shares of $4.25 each. At that date, the company issued 70% of its ordinary shares at a premium of $1.40 each and 50% of its preference shares at par. During that year ended 31 December 2021, the company declared and paid an ordinary dividend $0.15 per share along with preference dividends. On January 1st2022, the company issued the remaining ordinary shares at $4.00 each and the remaining preference shares at $6.00 each. REQUIRED: a) Calculate the value of dividends paid by the company during the financial year ending December 31, 2021. (5 marks) b) Calculate the amount of money the Springs and Sponges raised from the additional issuance of ordinary and preference shares on the 1st of January 2022. (6 marks) c) Journalize the above transactions reflecting the issue of the shares for January 1st2021 and January 1st2022 and the payment of dividends for December 31, 2021. (9 marks)

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