As of January $2,2024,$ the LMNO Corporation had both preferred and common

stock in its capital structure. The preferred stock had a stated value of $$10$ per share,

Bon $24$ nut with an annual dividend of $5\%,30,000$ shares issued, and $10,000$ shares of treasury

tn $u{r}^{\text{'}\text{'}{Y}^{14}}$ stock. The common stock had a par value of $$4$ per share, with $25,000$ shares issued

and $6,000$ shares in the treasury.

On August $1,2024,$ the Board of Directors declared and paid the preferred stock

cash dividend for the year. In addition, on that same day the company declared a

$15\%$ common stock dividend, when the market value was $$7$ per share.

When the stock dividend was distributed on September $15,2024,30\%$ of the

dividend was distributed in the form of fractional$-$share stock rights. By December

$31,2024,60\%$ of the stock rights had been exchanged for common stock, and the

remaining stock rights had expired.

Prepare the journal entries that the LMNO Corporation would prepare for

both the preferred and common dividends in $2024.$