Sonoma Lakes Ltd

question 61

Essay

Sonoma Lakes Ltd. (SLL) has the following authorized share capital:
Unlimited Common voting shares
500,000 Class A, $5 cumulative preferred shares
500,000 Class B, $10 non-cumulative preferred shares
During 2014, SLL had the following share transactions for cash:
Jan 1 Issued 50,000 common shares for $100,000.
Mar 12 Issued 1,000 Class A preferred shares for $60,000.
Apr 30 Issued 20,000 common shares for $2.50 per share.
Jun 20 Issued 3,000 Class B preferred shares for $70 per share.
SLL did not declare any dividends during 2014. On December 31, 2015 a dividend of $3 per share was declared on preferred shares issued.
Instructions
a. Journalize the share transactions.
b. Calculate the number of common shares issued at December 31, 2014.
c. Calculate the amount of the December 31, 2015 total dividend declared and the amount of dividends in arrears after declaring the December 31, 2015 dividend.

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Definitions:

Team Effectiveness

Measures how well a team accomplishes its goals and meets the needs of its members and organization.

Formal Retreat Approach

A strategic decision-making process where decision makers step back from the immediate problem in order to reconsider their options from a new perspective.

Firm's Headquarters

The primary office or location where the central functions of an organization are coordinated and managed, often the base for executive decision-makers.

Continuous Improvement Approach

A long-term approach to work that systematically seeks to achieve incremental changes in order to improve efficiency and quality.