7-11. Bell Company has stock outstanding as follows: Common, $10 par value per share, 140,000 shares; Preferred, 5%; $100 par value per share, 6,000 shares. The Preferred is cumulative and fully participating; two years are in arrears (not including the current year); and the total amount of cash dividends declared for both classes of stock is $190,000.

Instructions

Prepare a schedule to show the dividend distribution and prepare the journal entries for the dividend declaration, separating the dividend into the common and preferred portions.