Cumulative Preferred Stock : It is a type of stock which consists of a clause which says that if any past year dividend is not paid then it should be paid in the next accounting year before any dividend of equity shares. Noncumulative Preferred Stock: In this type of stock, when any dividends get missed then it is not paid in the next accounting period. Nonparticipating Preferred Stock: In this type preference shareholder does not receive any amount greater than normal dividends under any circumstances. Participating Preferred Stock: Participating preference shareholders receive extra dividend if the dividend paid to the equity shareholder exceed the dividend of preference shareholder, up to the limit of extra dividend paid to equity shareholder. To identify : Characteristic of the following statement.

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PROBLEM E Mulles, the owner of a successful fertilizer business, felt that it is time to expand operations. Mulles offered to form a partnership with Lucena, the owner of a nearby warehouse. The partnership would be called Mulles & Lucena Storage and Sales. Lucena accepted Mulles' offer and the partnership was formed on July 1,2024. Presented below is the trial balance for Mulles Fertilizer Supply on June 30, 2024: Cash Accounts Receivable Allowance for Uncollectible Accounts. Inventory Prepaid Rent Store Equipment Accumulated Depreciation Notes Payable Accounts Payable Mulles, Capital Total P 229,500 2,103,000 P 117,000 1,012,500 29,250 390,000 P3,764,250 97,500 330,000 505,500 2,714,250 P3,764,250 The partners agreed to share profits and losses equally and decided to invest an equal amount in the partnership. Lucena and Mulles agreed that Lucena's land is worth P500,000 and his building P1,450,000. Lucena is to contribute cash in an amount sufficient to make his capital account…

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Chapter 11, Problem 7E

To determine

Cumulative Preferred Stock:

It is a type of stock which consists of a clause which says that if any past year dividend is not paid then it should be paid in the next accounting year before any dividend of equity shares.

Noncumulative Preferred Stock:

In this type of stock, when any dividends get missed then it is not paid in the next accounting period.

Nonparticipating Preferred Stock:

In this type preference shareholder does not receive any amount greater than normal dividends under any circumstances.

Participating Preferred Stock:

Participating preference shareholders receive extra dividend if the dividend paid to the equity shareholder exceed the dividend of preference shareholder, up to the limit of extra dividend paid to equity shareholder.

To identify: Characteristic of the following statement.

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PROBLEM E Mulles, the owner of a successful fertilizer business, felt that it is time to expand operations. Mulles offered to form a partnership with Lucena, the owner of a nearby warehouse. The partnership would be called Mulles & Lucena Storage and Sales. Lucena accepted Mulles' offer and the partnership was formed on July 1,2024. Presented below is the trial balance for Mulles Fertilizer Supply on June 30, 2024: Cash Accounts Receivable Allowance for Uncollectible Accounts. Inventory Prepaid Rent Store Equipment Accumulated Depreciation Notes Payable Accounts Payable Mulles, Capital Total P 229,500 2,103,000 P 117,000 1,012,500 29,250 390,000 P3,764,250 97,500 330,000 505,500 2,714,250 P3,764,250 The partners agreed to share profits and losses equally and decided to invest an equal amount in the partnership. Lucena and Mulles agreed that Lucena's land is worth P500,000 and his building P1,450,000. Lucena is to contribute cash in an amount sufficient to make his capital account…

PLEASE HELP. ALL RED CELLS ARE INCORRECT. NOTICE, REVENUE ACCOUNTS ARE IN THE DROPDOWN!

Journalize these transactions, also post the transcations to T-accounts and determine month-end balances. Finally prepare a trail balance.