The following elements of stockholders’ equity are from the balance sheet of Holli Marketing Corp. at December 31, 2024: 

Holli Marketing Corp. paid no preferred dividends in 2024. 

Requirements 

1. Compute the dividends to the preferred and common shareholders for 2025 if total dividends are $195,000 and assuming the preferred stock is noncumulative. Assume no changes in preferred and common stock in 2025. 

2. Record the journal entries for 2025 assuming that Holli Marketing Corp. declared the dividends on July 1 for stockholders of record on July 15. Holli Marketing Corp. paid the dividends on July 31.

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Stockholders' Equity Paid-In Capital: Preferred Stock-7%, $2 Par Value; 100,000 shares authorized, 75,000 shares issued and outstanding Common Stock-$0.10 Par Value; 10,250,000 shares authorized, 9,500,000 shares issued and outstanding $ 150,000 950,000