Reference no: EM132465783

1.Charter Flights Inc. was incorporated on July 1, 2015. The arlicles of iocorporalion indicated the company was authorized to issue 600,000 par value common shares and 225,000, $3 preferred shares that are com and participating in disu'ibutions in excess of 5% of a dividend rate on the shares. The company's year~end is December 31st. The following inform relates to the company's shareholders' equity account. 1. 50,000 common shares issued for cash on July 1, 2015, at $175 per

2. 22,500 $3 preferred shares were issued on July 1, 2015 at $00 per

3. 15,000 common shares exchanged on Dct15, 2015, for land in the d core. The land had originally cost the seller $300,000 and had an fair value of $450,000 on Oct 15, 2015 when Charter Flights shares selling for $22.

4. September 1, 2015: subscriptions were received for 12,000 commo at $25 per share. The ?rst installment of $300,000 was received on and the final installment was paid on February 1, 2016.

5. May 1, 2016: the company purchased 4,500 of its common shares a share and restored these shares to the status of authorized but uniss

6. June 1, 2016: the company declared a 5% stock dividend for shareh record on July 1, 2016. The company was short on cash and thereforenot pay a cash dividend. The company's shares were selling at $65 on June 1, 2016.

• August 15, 2016: the company sold 15,000 common shares for $1,

Dividends:

Charter Flights did not declare any dividends unlil December 31, 2 that date total dividends of $200,000 were declared.

• The company incurred the following profits

Required:

Question a) Determine the amount of dividends received by preferred and common shareholders from the September 30, 2023 declaration.

Question b) Prepare the journal entries for 2022-23 fiscal year.

Question c) Prepare the statement of changes in equity and the shareholders' equity section of the balance sheet for September 30, 2023.