Knudsen Corporation was organized on January 1, 2021. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,000; 2022, $12,000; and 2023, $28,000.

Instructions
a. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and noncumulative.
b. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and cumulative.
c. Journalize the declaration of the cash dividend at December 31, 2023, under part (b).