Equity Transactions
Congo Corp Instructions
A) Record the Following Transactions Which Occurred Consecutively

Equity transactions
Congo Corp. has the following capital structure at the beginning of this year: $\begin{array}{ll}\text{Preferred shares, \$ 3 , no par value, cumulative, 20,000 shares authorized, } \\\quad\text{ 6,000 shares issued and outstanding ............................................................} & \$ 300,000 \\\text{ Common shares, no par value, 60,000 shares authorized, ............................ } \\\quad\text{ 40,000 shares is sued and outstanding. ....................................................... } & \underline{510,000} \\\text{ Total contributed capital ........................................................................... } & 810,000 \\\text{ Retained earnings ...................................................................................... } & \underline{\text{ 340,000}} \\\text{ Total shar eholders' equity ....................................................................... } & \underline{\text{ \underline{\text{ \$1,150,000}} }} \\ \end{array}$ Instructions
a) Record the following transactions which occurred consecutively this year. Show all calculations.
i. There are no dividends in arrears. A total cash dividend of $ 90,000 was declared. The preferred shares are participating to a maximum of 10%. Record dividends payable to common and preferred shares in separate accounts.
ii. A 10% common stock dividend was declared. The current market value of the common shares is $ 16 a share.
iii. Net income for the year was $ 180,000. Record the closing entry.
b) Incorporating all the above information, construct the shareholders' equity.