Cash Dividends Sanders Corporation has the following shares outstanding: 6,000 shares of $50 par value, ten percent preferred stock and 40,000 shares of 1 par value common stock. The company has $328,000 of retained earnings. At year end, the company declares its regular 35 per share cash dividend on the preferred stock and a $4.2 per share cash dividend on the common stock. Three weeks later, the company pays the dividende a. Prepare the journal entry for the declaration of the cash dividerids. b. Prepare the journal entry for the payment of the cash dividends. General Journal Credit Description Ref. S 5 Debit a. Dividends Payable. Common Stock To record declaration of dividend on preferred stock andcommon stock b. Dividends Payable - Common Stock To record payment of dividends on preferred and common stocks