The following is an extract from the balance sheet of Belle Beauty World Ltd. as at December 31, 2020:

The company did not declare dividends in either 2019 or 2020.
On October 31, 2021, Belle declared the stipulated dividends, including arrears, on both classes of preferred shares payable on December 1, 2021, to holders of record at the close of business on November 15, 2021.

On November 30, 2021, Belle declared a 10% common stock dividend distributable on January 2, 2022, to holders of record at the close of business on December 15, 2021. The ex-dividend price of the common shares was $15.

Required:
Assume that Belle elects to prepare a journal entry at the declaration date of the common stock dividend to record the impending distribution. Prepare the journal entries to record the above transactions.

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Shareholders' equity Preferred shares A, 500,000 authorized, $2 per share non-cumulative dividend, 50,000 issued and outstanding Preferred shares B, 250,000 authorized, $1 per share cumulative dividend, 25,000 issue and outstanding Common shares, 10,000,000 authorized, 200,000 issued and outstanding Retained earnings Total shareholders' equity $ 500,000 250,000 2,000,000 10,000,000 $12,750,000