Table 13-7
Masters Inc $\quad\quad\quad \$ 100,000$ Common Shares, Unlimited Number of Shares Authorized

question 101

Essay

Table 13-7
Masters Inc.
Partial Balance Sheet
December 31,2017
Shareholders' Equity
Contributed Capital:
Preferred shares, $1.00, 100,000 shares authorized, 20,000
shares issued $\quad\quad\quad \$ 100,000$ Common shares, unlimited number of shares authorized,
$\begin{array}{ll}\text { 100,000 shares issued } & \underline{350,000} \\\text { Total contributed capital } & 450,000 \\\text { Retained earnings } & \underline{170,000} \\\text { Total shareholders' equity } & \underline{\$ 620,000}\end{array}$

-Refer to Table 13-7.Assume that the preferred shares are cumulative and that there have been no dividends declared in 2015 and 2016.Prepare the journal entry to record the declaration and payment of a dividend in the total amount of $85,000,on December 3,2017.Use separate dividends payable accounts for preferred and common shares.

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Definitions:

Metamorphic Rocks

Rocks that have been transformed from an original state into a new texture or structure by heat, pressure, and/or fluid activity.

Solidification

The process of a liquid becoming solid, especially upon cooling, as in the formation of igneous rock from cooled magma or lava.

Erosion

The wearing away of soil, sediment, and rock through the removal of material by running water, waves, currents, ice, wind, and gravity.

Weathering

Physical disintegration and chemical decomposition of rocks, sediment, and soil due to exposure to water and other chemical, atmospheric, and biological agents.