B-Mobile Wireless needed additional capital to expand, so the business

incorporated. The charter from the state of Georgia authorizes B-Mobile to issue

70,000 shares of 5%, $100 par value cumulative preferred stock, and 110,000

shares of $2 par value common stock. During the first month, B-Mobile completed

the following transactions:

How is the following recorded?

Declared a $16,000 cash dividend for stockholders of record on Oct. 20.

Use a separate Dividends Payable account for preferred and common stock.

Paid the cash dividend.