Cash Dividends Sanders Corporation has the following shares outstanding: 8,500 shares of $50 par value, six percent preferred stock and 55,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year-end, the company declares its regular $3 per share cash dividend on the preferred stock and a $2.2 per share cash dividend on the common stock. Three weeks later, the company pays the dividends. Credit a. Debit X $ 07 11 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 Ref. Description Cash Dividends $ Dividends Payable - Preferred Stock Dividends Payable - Common Stock To record declaration of dividend on preferred stock andcommon stock b. Dividends Payable Preferred Stock . Dividends Payable. Common Stock Cash To record payment of dividends on preferred and common stocks. 25.500 0 x OX 0 0 07 OX