Vitacom Technologies Corp $\quad\quad\quad\$ 5,400,000$ Common Shares,500,000 Shares Authorized

question 25

Essay

Vitacom Technologies Corp.reports the following shareholders' equity as of December 31,2017:
Preferred shares,$5 cumulative,200,000 shares authorized,
90,000 shares issued $\quad\quad\quad\$ 5,400,000$ Common shares,500,000 shares authorized,
$\begin{array}{ll}200,000 \text { shares issued }&2,750,000\\\text { Total contributed capital } & 8,150,000 \\\text { Retained earnings } & 3,400,000 \\\text { Total shareholders' equity }&\$11,550,000\end{array}$ Determine the following:
a_What was the average issue price per common share?
b_What was the average issue price per preferred share?
c_Assume net income for 2017 was $825,000.Journalize the entry to close net income to retained earnings.
d_Assume the board of directors declares dividends of $1,850,000 in 2017.No dividends were declared in 2016.Calculate the amount per share each class of shares will receive.

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Definitions:

Start-Up Process Model

A framework outlining the steps or phases involved in launching a new business, from conception to market entry.

Organizational Characteristics

Features that define the structure, culture, and operational dynamics of an organization, influencing its performance and behavior.

IPO

Initial Public Offering, a process where a private company offers shares to the public for the first time to raise capital.

Environmental Factors

External elements including economic, political, social, technological, and ecological influences that can affect a business or its operations.