Brief Exercise 12.9 (Static) Cash Dividend Journal Entries (LO12-4)

Gammon, Inc., declared dividends during the current year as follows.

• The current year's cash dividend on the 6 percent, $100 par value preferred stock. 100,000 shares were outstanding at the time of the declaration.
• A cash dividend of $0.75 per share on the $10 par value common stock. 750,000 shares were outstanding at the time of the declaration.

Prepare the general journal entries to record the declaration and payment of these dividends, assuming the declaration is recorded directly in retained earnings.