Cheyenne Corporation issued $103,000$ shares of $$20$ par value, cumulative, $8\%$ preferred stock on January $1,2021,$ for $$2,590,000.$ In

December $2023,$ Cheyenne declared its first dividend of $$720,000.$

$($a$)$

Your answer is correct.

Prepare Cheyenne's journal entry to record the issuance of the preferred stock. $($Credit account titles are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts.$)$

Account Titles and Explanation

Credit

$2590000$

Preferred Stock

$2,060,000$

Paid$-$in Capital in Excess of Par$-$Preferred Stock

Attempts: $2$ of $3$ used

$($b$)$

Your answer is incorrect.

If the preferred stock is not cumulative, how much of the $$720,000$ would be paid to common stockholders?