CALCULATOR PRINTER VERSION BACK NEXT Problem 15-07 The books of Martinez Corporation carried the following account balances as of December 31, 2020. Cash $180,000 Preferred Stock (6% cumulative, nonparticipating $50 par) 310,000 Common Stock (no-par value, 316,000 shares issued) 1,580,000 Pald-in Capital in Excess of Par--Preferred Stock 135,000 Treasury Stock (common 2,800 shares at cost) 31,200 Retained Earnings 112,300 The company decided not to pay any dividends in 2020 The board of directors, at their annual meeting on December 21, 2021, declared the following: "The current yder dividends shall be 6% on the preferred and $0.50 per share on the common. The dividends in arrears shall be paid by issuing 1.550 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 2021 is estimated at $81,600. (a) Prepare the journal entries required for the dividend declaration and payment, assuming that they occur simultaneously. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If ne entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places. 3.487.) Account Titles and Explanation Debit For preferred dividends in arrearst Credit For preferred current year dividend: For common share dividendi (b) Could Martinez Corporation give the preferred stockholders 2 years' dividends and common stockholders a 50 cents per share dividend, in cash LTH ACCOUNT