Maitland Ltd has issued 2 000 000 ordinary shares for $4 and 200 000 8% preference shares for $4, all shares being fully paid. On 30 September 2016 at the annual general meeting of the company, a dividend was declared for a total cash payout of $320 000. Preference shares are entitled to participate in further dividends once ordinary shares have received 8 cents per share. Assume that the dividends are taken out of retained earnings.

Required

A. Show how the total dividend would be apportioned between ordinary and preference shares.

B. Prepare journal entries in general journal form to record the dividend payments.