P8-51b teak OUTDOOR FURNITURE LIMITED INCLUDED THE FOLLOWING SHAREHOLDERS EQUITY. IN ITS YEAR-END BALANCE SHEET AT FEBR

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P8-51b teak OUTDOOR FURNITURE LIMITED INCLUDED THE
FOLLOWING SHAREHOLDERS EQUITY. IN ITS YEAR-END BALANCE SHEET AT
FEBRUARY 28,2020:
SHAREHOLDERS' EQUITY
PREFERRED SHARES, $1.10 CUMULATIVE,AUTHORIZED 100,000 SHARES IN
EACH CAPITAL
CLASS A-------ISSUED 75,000
SHARES------------------------------------------------------$1,500,000
CLASS B-------ISSUED 92,000
SHARES------------------------------------------------------
1,840,000
COMMON SHARES:AUTHORIZED 1,000,000 SHARES, ISSUED 280,000
SHARES. 6,940,000
RETAINED
EARNINGS-----------------------------------------------------------------------------------8,330,000
$ 18,610,000
REQUIREMENT
1. IDENTIFY THE DIFFERENT ISSUES OF SHARES THAT TEAK
OUTDOOR FURNITURE LIMITED HAS OUTSTANDING.
2. GIVE THE SUMMARY ENTRIES TO RECORD ISSUANCE OF ALL TEAK
SHARES. ASSUME THAT ALL SHARES WERE ISSUED FOR CASH.
3. SUPPOSE TEAK DID NOT PAY ITS PREFERRED DIVIDED FOR THREE
YEARS. WOULD THE COMPANY HAVE TO PAY THOSE DIVIDENDS
IN ARREARS BEFORE PAYING DIVIDENDS TO THE COMMON SHAREHOLDERS?
GIVE YOUR REASON.
4. WHAT AMOUNT OF PREFERRED DIVIDENDS MUST TEAK DECLARE AND PAYS
EACH YEAR TO AVOID HAVING PREFERRED DIVIDENDS IN ARREARS?