A) On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 517,000 shares of stock outstanding. Closing entries are recorded on July 31. Prepare any necessary journal entries for each date.

1. Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 517,000 shares of stock outstanding.

2. Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 517,000 shares of stock outstanding.

3. Record the entry on the date of payment for the cash dividend.

4. Record the entry to close the dividend account to retained earnings.

B) Colliers, Inc., has 115,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $3 per share, but because of cash flow problems, the company did not pay any dividends last year. The board of directors plans to pay dividends in the amount of $800,000 this year.

1. What amount will go to preferred stockholders?

2. How much will be available for common stock dividends?