Allocating Cash Dividend in between Preferred Stock Holders and Common Stock Holders On December 31, 2023, IBR Inc. has 1,000 shares of 8%, $100 par value cumulative preferred stock. At December 31, 2023, the directors declare a $6,000 cash dividend. Prepare the entry to record the declaration of the dividend. At December 31, 2024, IBR declares a $50,000 cash dividend. Show the allocation of dividends to each class of stock. Step 1: Calculate P/S Dividends = 8%*100*1,000 shares = 8,000 Step 2: Set up a Cash Dividend Allocating Schecule between P/S and C/S a) Cumulative P/S dividend

	2023	2024
Total Cash Div Available	6000	50000
P/S Div in arrears - Prior Years	0	2000	=8000 from 2023 - 6000 from 2023
P/S Div Current Year	6000	8000	from step 1
C/S Div	0	40000
b) Non-cumulative P/S dividend
	2023	2024
Total Cash Div Available	6000	50000
P/S Div in arrears - Prior Years	0	0	none
P/S Div Current Year	6000	8000	from step 1
C/S Div	0	42000