Preferred Dividends}

Nathan Product Ltd.'s equity includes \(6.5 \%\), \(\$ 150\) stated value preferred shares. There are unlimited shares authorized and 30,000 shares issued and outstanding. Assume that Nathan Products declares and pays preferred dividends quarterly.

\section*{Required:}

1. Prepare the journal entry to record declaration of one quarterly dividend.

2. Prepare the journal entry to record payment of one quarterly dividend.