Reference no: EM132723803

Question - Bonita Limited has the following information available regarding its share capital at December 31, 2020:

Preferred shares, $3.50 cumulative, 21,900 shares issued $1,095,000

Preferred shares, $4.50 noncumulative, 14,000 shares issued 700,000

Common shares, 293,000 shares issued 1,465,000

The shares were issued when the corporation began operations on January 1, 2019. No dividends were declared during 2019 and 2020. On October 30, 2021, the board of directors declares the required preferred share dividends and a $0.50 dividend for each of the common shares. The dividends are payable on December 1, 2021, to the shareholders of record on November 16, 2021.

Required - How much will be paid to each class of shares? Prepare journal entries on the appropriate dates for the 2021?