Reference no: EM132421189
The following items were shown on the balance sheet of McKean Corporation on December 31, 2011:
Shareholders' Equity
Share Capital
Common shares, no par value, unlimited number of shares
authorized; ______ shares issued $1,200,000
$2 preferred shares, no par value, redeemable at $120, cumulative,
20,000 shares authorized, 6,000 shares issued 120,000
Total share capital 1,320,000
Retained Earnings 500,000
Total shareholders' equity $1,820,000
Instructions
Complete the following statements and show your calculations. All of the common shares were issued at $5 per share.
(a) The number of common shares issued was ____240,000___________.
(b) The preferred shares dividend was $____________ per share.
(c) It would cost the company $____________ to reacquire 1,000 preferred shares.
(d) The average issue price of the preferred shares was $_____________.
(e) The total amount of cash and other assets paid to McKean Corporation in exchange for share capital, at December 31, 2011 was $______________.