Cash Dividends Rock Corporation has the following shares outstanding: 8,000 shares of $20 par value, eight percent preferred stock and 50,000 shares of $1 par value common stock. The company has $214,000 of retained earnings. At year-end, the company declares its regular $1.60 per share cash dividend on the preferred stock and a $1.60 per share cash dividend on the common stock. Two weeks later, the company pays the dividends. a. Prepare the journal entry for the declaration of the cash dividends. b. Prepare the journal entry for the payment of the cash dividends. General Journal Description Ref. Debit Credit a. Dividends payable - Preferred stock To record declaration of cash dividend. b. Dividends payable - Common stock To record payment of dividends