Klammer Consulting, Inc., has 10,000 shares of \($4.50,\) no-par preferred stock and 50,000 shares of no-par common stock outstanding. Klammer Consulting, Inc., declared and paid the following dividends during a three-year period: 2008, \($20,000;\) 2009, \($100,000;\) and 2010, \($200,000\).

Requirements

1. Compute the total dividends to preferred stockholders and to common stockholders for each of the three years if

a. preferred is noncumulative.

b. preferred is cumulative.

2. For case 1(b), journalize the declaration of the 2010 dividends on December 28, 2010, and the payment of the dividends on January 17, 2011. Use separate Dividends Payable accounts for preferred and common stock.