2. Using the information given above, prepare a statement of retained earnings for the year ended December 31. SNEER CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 Retained Earnings, December 31 3. Prepare a journal entry to close the dividends account. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the entry to close the dividends account. Note: Enter debits before credits. Transaction General Journal DebitCredit Record entry Clear entry View general journal E11-11 Recording Dividends and Preparing a Statement of Retained Earnings [LO 11-2, LO 11-3] The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $300,000 in the current year. It also declared and paid dividends on common stock in the amount of $1.00 per share. During the current year, Sneer had 1 million common shares authorized; 500,000 shares had been issued; and 280,000 shares were in treasury stock. The opening balance in Retained Earnings was $700,000 and Net Income for the current year was $200,000 Required: 1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the declaration of a cash dividend of $300,000 to the preferred stockholders. 2 Record the payment of the cash dividend to the preferred stockholders Record the declaration of a cash dividend of $1.00 per share to the common stockholders payable on the shares outstanding 3 Credit 4 Record the payment of the cash dividend to the common stockholders. Notejournal entry has been entered Record entry Clear entry View general journal Journal entry worksheet 2 3 4 Record the declaration of a cash dividend of $300,000 to the preferred stockholders Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal