Reference no: EM133185124

Question - The following information is for the Can You Hear MeCorporation, as of the fiscal year ended December 31, 20--. Note the information is not in any specific order.

Recording Fees Earned $800,000

Advertising Expense 50,000

Common Shares (no par value, unlimited number of shares authorized, 150,000 shares issued) 2,400,000

Rent Expense 10,000

Contributed Capital in Excess of Stated Value - Preferred Shares 300,000

Audio Repair Expense 8,500

Miscellaneous Expense 9,250

Preferred Shares ($6, cumulative, $100 stated value, 100,000 shares

Authorized, 4,000 shares issued) 400,000

Retained Earnings 1,276,000

Wages Expense 79,500

Telephone Expense 4,575

Scenario 1: Create the corporation's Income Statement, Statement of Retained Earnings, and Shareholder's Equity section of the Balance Sheet. Use the assumption that the preferred shareholders were paid their dividend and the common shareholders were paid $50,000 in dividends.

Scenario 2: Create the corporation's Income Statement, Statement of Retained Earnings, and Shareholder's Equity section of the Balance Sheet. Use the assumption that the preferred shareholders were NOT paid their dividend nor were the common shareholders, and the retained earnings were $925,000.