Alverstone Inc. has the following shares outstanding: 54,000 common and 18,000 $0.75 cumulative preferred. On December 15, the directors declared dividends of $64,800 to the shareholders of record on December 28, payable January 10. Dividends have not been paid for the past two years.

(a) Calculate the amount of dividends payable to each of the common shareholders and the preferred shareholders.

(b) Prepare the required entries on each of these dates.