Can you help me to answer the box with color red highlight? Thank you

The shareholders' equity of Deer Ltd. at the end of 2020 and 2019 appeared as follows: 2020 2019 $218,700 $218,700 Share capital, preferred shares. $2 cumulative, 2,000,000 shares authorized, 24,300 shares issued Share capital, 5,000,000 common shares authorized, 1,250,000 common shares issued (2019-1,050,000 shares) Retained earnings Total shareholders' equity 5,200,000 3,636,000 $9,054,700 4,200,000 2,892,000 $7,310,700 During 2020, Deer paid a total of $113,000 in cash dividends. Your answer is partially correct. Assume the preferred shares were not in arrears at December 31, 2019. How was the $113.000 in cash dividends between the two types of shares in 2020? Preferred Common Total $ 48,600 $ 2020 64.400 113,000 Assume the preferred share dividends were in arrears for one year, that is, the dividends were not paid in 2019. How was the $113,000 in cash dividends distributed between the two classes of shares? Preferred Common Total $ 2019 arrears 97,200 $ 15,800 $ 113,000 2020 48,600 64,400 113,000 $ $ $ Both common shares and retained earnings changed during the year. Provide journal entries that would account for the changes. (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 for the amounts.) No. Account and explanation Debit Credit 1. Cash 1,000,000 Common Shares 1,000,000 2. 113,000 (common shares issued during year) Dividends Declared Dividends Payable (Dividends declared during year) Cash Dividend Payable 113,000 3. 113,000 113,000 Cash (Dividends paid during year) Net Income 4. 857.000 857.000 Retained Earnings (Net income for the year closed to retained earnings) Retained Earnings 5. 113,000 Dividends Declared 113.000 (Dividends Declared for the year closed to retained earnings)