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 Common stock, $10 par, 5,000 shares issued and outstanding Additional paid-in capital Total contributed capital Retained earnings Total stockholders' equity $200,000 50,000 300,000 $550,000 400,000 $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. Preferred stock Common stock Amount of Dividends 2. Identify and analyze the effect of the transactions on July 1 and August 1, 2017. July 1: Activity Accounts Statement(s) 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, ie, a decrease, be sure to enter the answer with a minus sign. August 1: Activity Accounts Statement(s) Assets Balance Sheet Liabilities Stockholders' Equity Revenues Income Statement Expenses Net Income August 1: Activity Accounts Statement(s) 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 a minus sign. Assets Balance Sheet Liabilities Stockholders' Equity 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 Revenues Income Statement Expenses Net Income