Buffalo Limited has the following information available regarding its share capital at December 31, 2020:Preferred shares, $3.50 cumulative, 18,700 shares issued $935,000Preferred shares, $4.50 noncumulative, 14,800 shares issued 740,000Common shares, 296,000 shares issued 1,480,000The 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. How much will be paid to each class of shares?Cumulative preferred shares $enter a dollar amount Noncumulative preferred shares $enter a dollar amount Common shares $enter a dollar amount Prepare journal entries on the appropriate dates for the 2021 dividends. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCreditOct. 30enter an account title to record declaration of dividend on October 30enter a debit amountenter a credit amount enter an account title to record declaration of dividend on October 30enter a debit amountenter a credit amount enter an account title to record declaration of dividend on October 30enter a debit amountenter a credit amount (To record declaration of dividend.) choose a transaction date enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amountchoose a transaction date enter an account title to record payment of dividendenter a debit amountenter a credit amount enter an account title to record payment of dividendenter a debit amountenter a credit amount (To record payment of dividend.) Assume instead that the maximum cash dividend the company can pay in 2021 is $180,850.Determine how much will be paid to the preferred shareholders and to the common shareholders.Dividends paid to the preferred shareholders $enter a dollar amount Dividends paid to the common shareholders $enter a dollar amount Prepare journal entries on the appropriate dates for the 2021 dividends. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCreditOct. 30(To record declaration of dividend.)(To record payment of dividend.)> Buffalo Limited has the following information available regarding its share capital at December 31, 2020:Preferred shares, $3.50 cumulative, 18,700 shares issued$935,000Preferred shares, $4.50 noncumulative, 14,800 shares issued740,000Common shares, 296.000 shares issued1,480,000The shares were issued when the corporation began operations on January 1, 2019. No dividends were declared during 2019 and2020. On October 30. 2021, the board of directors declares the required preferred share dividends and a $0.50 dividend for each ofthe common shares. The dividends are payable on December 1, 2021, to the shareholders of record on November 16, 2021.How much will be paid to each class of shares?Cumulative preferred sharesNoncumulative preferred shares24Common shares

Shareholders also invest money in the company and in return they become the owners in proportion to…

Answered: Buffalo Limited has the following…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 5MC

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

Preferred shares, $3.50 cumulative, 18,700 shares issued		$935,000
Preferred shares, $4.50 noncumulative, 14,800 shares issued		740,000
Common shares, 296,000 shares issued		1,480,000

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.

How much will be paid to each class of shares?

Cumulative preferred shares		$enter a dollar amount
Noncumulative preferred shares		$enter a dollar amount
Common shares		$enter a dollar amount

Prepare journal entries on the appropriate dates for the 2021 dividends. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Oct. 30	enter an account title to record declaration of dividend on October 30	enter a debit amount	enter a credit amount
	enter an account title to record declaration of dividend on October 30	enter a debit amount	enter a credit amount
	enter an account title to record declaration of dividend on October 30	enter a debit amount	enter a credit amount
	(To record declaration of dividend.)
choose a transaction date	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date	enter an account title to record payment of dividend	enter a debit amount	enter a credit amount
	enter an account title to record payment of dividend	enter a debit amount	enter a credit amount
	(To record payment of dividend.)

Assume instead that the maximum cash dividend the company can pay in 2021 is $180,850.

Determine how much will be paid to the preferred shareholders and to the common shareholders.

Dividends paid to the preferred shareholders		$enter a dollar amount
Dividends paid to the common shareholders		$enter a dollar amount

Prepare journal entries on the appropriate dates for the 2021 dividends. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.
Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
Oct. 30
(To record declaration of dividend.)
(To record payment of dividend.)
>

Buffalo Limited has the following information available regarding its share capital at December 31, 2020:
Preferred shares, $3.50 cumulative, 18,700 shares issued
$935,000
Preferred shares, $4.50 noncumulative, 14,800 shares issued
740,000
Common shares, 296.000 shares issued
1,480,000
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.
How much will be paid to each class of shares?
Cumulative preferred shares
Noncumulative preferred shares
24
Common shares

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