Reference no: EM132950146

Selected T-accounts for Jade Mineral Corporation at December 31, 2020, are duplicated below.

Preferred Shares, $6 cumulative

10,000 shares authorized

9,000 shares issued 225,000 Dec. 31/19 Bal. 225,000 Dec. 31/20 Bal.

Common Shares,

50,000 shares authorized

45,000 shares issued 585,000 Dec. 31/19 Bal. 585,000 Dec. 31/20 Bal.

Retained Earnings 136,000 Dec. 31/19 Bal. ? Dec. 31/20 Bal.

Note:

• Dividends were not paid during 2018 or 2019. Dividends of $5.80 per common share were declared and paid for the year ended December 31, 2020.
• 2018 was the first year of operations.
• All shares were issued in the first year of operations.

Required:

Using the information provided, answer the following questions.

Problem 1. What is the total amount of dividends that the preferred shareholders are entitled to receive per year?

Problem 2. Are there any dividends in arrears at December 31, 2019? If yes, calculate the dividends in arrears.

Problem 3. Calculate total dividends paid during 2020 to the