The following is an extract from the balance sheet of Zach’s Fashion Inc. as at December 31, 2018:

The company did not declare dividends in 2018.
On October 31, 2019, Zach’s declared the stipulated dividends, including arrears, on both classes of preferred shares payable on December 1, 2019, to holders of record at the close of business on November 15, 2019.
On November 30, 2019, Zach’s declared cash dividends of $0.50 per common share payable on January 2, 2020, to holders of record at the close of business on December 15, 2019.

Required:
Prepare the journal entries to record the above transactions.

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Shareholders' equity Preferred shares A, 100,000 authorized, $1 per share cumulative dividend, 10,000 issued and outstanding Preferred shares B, 50,000 authorized, $2 per share non-cumulative dividend, 5,000 issued and outstanding Common shares, 1,000,000 authorized, 100,000 issued and outstanding Retained earnings Total shareholders' equity 100,000 50,000 1,000,000 5,000,000 $6,150,000