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Current Attempt in Progress Your answer is partially correct. The books of Sunland Corporation carried the following account balances as of December 31, 2025. Cash Preferred Stock (6% cumulative, nonparticipating, $50 par) Common Stock (no-par value, 318,000 shares issued) Paid-in Capital in Excess of ParPreferred Stock Treasury Stock (common 2,600 shares at cost) Retained Earnings The company decided not to pay any dividends in 2025. $182,000 272,000 1,590,000 160,000 31,200 110,600 SUPPORT The board of directors, at their annual meeting on December 21, 2026, declared the following: "The current year dividends shall be 6% on the preferred and $0.30 per share on the common. The dividends in arrears shall be paid by issuing 1,360 shares of treasury stock." At the date of declaration, the preferred is selling at $83 per share, and the common at $12 per share. Net income for 2026 is estimated at $71,000. a. Prepare the journal entries required for the dividend declaration and payment, assuming that they occur simultaneously. (List all debit entries beforecreditentries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation For preferred dividends in arrears: No Entry No Entry For preferred current year dividend: Paid-in Capital in Excess of Par - Preferred Stock Cash For common share dividend: Common Stock Dividend Distributable Cash Debit 16320 95400 Credit 16320 95400 b. Could Sunland Corporation give the preferred stockholders 2 years' dividends and common stockholders a 30 cents per share dividend, all in cash? Yes