Cash Dividends The Stockholders' Equity section of Jackson Company's balance sheet as of January 1, 2017, appeared as follows: Preferred stock, $100 par, 8%, 2,000 shares issued and outstanding $200,000 Common stock, $10 par, 5,000 shares issued and outstanding 50,000 Additional paid-in capital 300,000 Total contributed capital $550,000 Retained earnings 400,000 Total stockholders' equity $950,000 The notes that accompany the financial statements indicate that Jackson has not paid dividends for the two years prior to 2017. On July 1, 2017, Jackson declares a dividend of $100,000 to be paid to preferred and common stockholders on August 1. Required: 1. Determine the amounts of the dividends to be allocated to preferred and common stockholders assuming that the preferred stock is noncumulative, nonparticipating stock. Amount of Dividends Preferred stock Common stock Feedback Check My Work 2. Identify and analyze the effect of the transactions on July 1 and August 1, 2017. July 1: Activity Operating X Retained Earnings Increase, Dividends Payable Increase X Accounts Statement(s) Balance Sheet and Income Statement X Feedback Check My Work How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income No Entry 0 No Entry X No Entry X ox No Entry No Entry 0 o Feedback Check My Work Partially correct August 1: Activity Operating X Accounts Dividends Payable Increase, Cash Increase X Statement(s) Balance Sheet and Income Statement X Feedback Check My Work How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income No Entry X 0 No Entry X OX No Entry o No Entry 0 No Entry 0 0 3. Determine the amounts of the dividends to be allocated to preferred and common stockholders assuming instead that the preferred stock is cumulative, nonparticipating stock. Amount of Dividends Preferred stock Common stock Feedback