Preferred Stock Issuance, Dividends in Arrears. On January 1, 2016, Pollo Company issued 1,000 shares of 4%, $100 par cumulative preferred stock for $110,000. On December 26, 2017, the board of directors declared dividends of $6,000, which were paid on December 31, 2017. The board of directors did not declare dividends again until December 24, 2020, at which time they declared dividends of $20,000. Pollo paid the dividends on December 27, 2020. Any dividends declared beyond what is due to the preferred stockholders go to the common stockholders