Preferred stock

The nature costs IPPP, OOH 3 years ago, and was carried on the promoters' sizes at Pl 50,000. Jan. 31 Issued 30,000 divides of commensurate preferred fund at Pl 50 per divide. Each divide can be converted to five divides of vulgar fund. The fortification hired IPPP, OOH to an commissioner for selling the divides. Feb.. 15 Sold 9,000 divides of vulgar fund at IPPP per divide. The fortification hired outcome costs of p 75,000. May 30 Current subscriptions for 12,000 divides of vulgar fund at IPPP per divide. Gag. 30 Issued 2,1 00 divides of vulgar fund and 4,200 divides of preferred fund in remodel for a fabric after a while a beautiful market compute Of Pl, 530,000. The fabric was originally dissipationd for Pl, 140,000 by the investors, and has a size compute of IPPP, OOH. In abstracted, 1,800 divides of vulgar fund were sold for IPPP, ooh specie. Novo. 15 Payments in bountiful for half of the subscriptions and favoring payments for the cessation of the subscriptions were current. Total specie current was Shares of fund were outcomed for the bountifuly hired subscriptions. Deck. Declared a specie dividend of Pl O per divide on preferred fund, payable on December 31 to fundholders of chronicles on December 1 5, and PEP per divide specie dividend on the vulgar fund, payable on January 15, 2006, to fundholders f chronicles on December 15.  QUESTIONS: Based on the overhead and the conclusion of your audit, indicate the aftercited as of December 31, 2005:            1 . Vulgar fund a. IPPP,ooh p 144, 000. c. IPPP, ooh.            2. Paid-in high in debauchery of par compute of preferred fund a. P 1. b. Pl 275,000. d. Pl 86,000 AP-5901 Q Page 2 of 5 Paid-in high in debauchery of par compute of the vulgar fund. The Perseverance Fortification has requested you to audit its financial statements for the year 2005. During your audit, Perseverance presented to you its weigh fencing as of December 31, 2004, containing the aftercited high section: Preferred fund POI par; 60,000 divides signed and outcomed, of which 6,000 are provision divides costing PEP, OOH and shown as an asset Vulgar fund, par compute PA; 600,000 divides signed, of which 450,000 are outcomed and uncollected Additional hired-in high (PA per divide on preferred fund outcomed in 2000) Allowance for uncertain statements receivable Reserve for backbiting. Reserve for reason security Retained hues IPPP,ooh 300,000 12,000 840,000 198,000 Additional information: 1) Of the preferred fund, 3,000 divides were sold for P 18 per divide on August 30, 2005. Perseverance credited the allowance to the Preferred Fund statement. The provision divides as of December 31, 2004, were adscititious in one dissipation in 2004. 2) The preferred fund carries an annual dividend of Pl per divide. The dividend is cumulative. As of December 31, 2004, unhired cumulative dividends amounted to AS per divide. The unimpaired store was liquidated in June 2005, by issuing to the preferred fundholders 54,000 divides of vulgar fund. 3) A specie dividend of Pl per divide was declared on December 1, 2005, to preferred fundholders Of chronicles December 1 5, 2005. The dividend is payable on January 15, 2006. 4). On December 31, 2005, the Allowance for Uncertain Accounts Receivable and Reserve for Backbiting had weighs of PEP, ooh, and Pl respectively. 5) On March 1, 2005, the Reserve for Reason Security was increased by PEP, OOH; Retained Hues was debited. 6) On December 31, 2005, the Reserve for Reason Security was decreased by PEP,000, which represents the carrying compute of a deed destroyed by reason n that date.