On January 1, 2020, Pollo Company issued 1,000 shares of 4%, $100 par cumulative preferred stock for $110,000. On December 26, 2021, the board of directors declared dividends of $6,000, which were paid on December 31, 2021. The board of directors did not declare dividends again until December 24, 2024, at which time they declared dividends of $20,000. Pollo paid the dividends on December 27, 2024. Any dividends declared beyond what is due to the preferred stockholders go to the common stockholders.

Required

a. What is the journal entry to record the issuance of preferred stock?

b. What is the journal entry to record the declaration and payment of stock dividends in 2021? What footnote disclosures are necessary for dividends in arrears in fiscal year 2021?

c. What footnote disclosures are necessary for dividends in arrears in fiscal year 2023?

d. What is the journal entry to record the declaration and payment of stock dividends in 2024?