Tone Corporation has authorized 200,000 shares of $1 par value common stock, of which 160,000 are issued and 140,000 are outstanding. On May 15, the board of directors declared a cash dividend of $.20 per share, payable on June 15 to stockholders of record on June 1. Prepare the entries in T accounts, as necessary, for each of the three dates.

Preferred Stock Dividends with Dividends in Arrears