Reference no: EM132563350

Larkspur Merchandising Inc. had the following share capital and balances on January 1, 2021.

1. $2.50 cumulative preferred shares, convertible into common shares at a ratio of 4 common shares for 1 preferred share, unlimited number of shares authorized, 130,000 shares issued$2,158,000
2. Common shares, unlimited number of shares authorized, 850,000 shares issued 3,060,000

The following transactions relating to shares occurred in 2021 and 2022.

• Mar31, 2021 Larkspur declared total annual dividends of $700,000 for shareholders of record on April 1, 2021. There were no dividend arrears at January 1, 2021.
• April 30,2021 Larkspur paid the dividends owing.
• July10, 2021 Shareholders converted 25,000 preferred shares into common shares. The fair value per preferred share was $17.90; per common share, $4.80.
• Feb.20,2022 Larkspur declared an annual dividend of $660,000 to shareholders of record on March 1, 2022.
• Mar.5,2022 Larkspur paid $360,000 of the dividends owing.
• July15,2022 Shareholders converted 50,000 preferred shares into 200,000 common shares. The fair value per preferred share was $16.90; per common share, $5.30.

Question 1: Journalize each of the transactions.