Durden Co. has $10 par value, 12% cumulative preferred stock. There are 10,000 shares issued and outstanding of the preferred stock. The company also has 100,000 shares of $1 par value common stock. No dividends had been paid in the years 2003, 2004, 2005, and 2006. In 2007, the company paid $35,000 in dividends. In 2008, the company paid $65,000 in dividends. Determine the allocation of dividends between preferred and common stockholders for 2007 and 2008. Year Preferred Stock Common Stock 2007 2008 Totals Equity transactions For each of the following independent transactions a through d, prepare the necessary journal entry (if necessary): Declared and paid a $0.40 per share cash dividend on 100,000 shares of preferred stock outstanding. Declared and distributed a 10% stock dividend on 400,000 shares of $5 par value common stock outstanding. Market price per common share on this date was $25. Declared and distributed a 2-for-1 stock split on 500,000 shares of $10 par value common stock outstanding. Declared and distributed a 40% stock dividend on 400,000 common shares of $5 par value common stock outstanding. Market price per common share on this date was $20. Accounts Debits Credits