(Dividend)

Metro Company reported the following amounts in the stockholders' equity section of its balance sheet on 12/31/x1, first year of operations:

Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000

Common stock, $5 par (100,000 shares authorized, 20,000 shares issued)100,000

APIC - Common125,000

Retained Earnings450,000

Total$875,000

During 20x2 and 20x3, Metro took part in the following transactions concerning stockholders' equity.

1. Declared and paid the annual dividends of $50,000 for 20x2.The preferred stock is cumulative.Metro did not pay any dividend in 20x1.Divide the dividend between preferred stock and common stock, and make journal entries for each dividend.