MacLayne Corporation has 5,000 shares of 5 -percent, \(\$ 10\) par value preferred stock and 100,000 shares of \(\$ 1.50\) par common stock outstanding. During a three-year period, MacLayne declared and paid cash dividends as follows: 19X1, \$1,500; 19X2, \$12,000; and 19X3 \(\$ 31,000\).

\section*{Required}

1. Compute the total dividends to preferred stock and common stock for each of the three years if:

a. Preferred is noncumulative and nonparticipating.

b. Preferred is cumulative and nonparticipating.

2. For case (1b), record the declaration of the \(19 \mathrm{X} 3\) dividends on December \(22,19 \mathrm{X} 3\), and the payment of the dividends on January 14, 19X4.