E11-11 Recording Dividends and Preparing a Statement of Retained Earnings LO 11-2, LO 11-3] The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $220,000 in the current year. It also declared and paid dividends on common stock in the amount of $1.80 per share. During the current year, Sneer had 1 million common shares authorized; 420,000 shares had been issued; and 208,000 shares were in treasury stock. The opening balance in Retained Earnings was $780,000 and Net Income for the current year was $280,000 Required 1. Prepare jounal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is complete but not entirely correct. Transaction General Journal Debit Credit Preferred Stock 220,000 Dividends Payable 220,000 a(2) Dividends Payable 220,000 2 Cash 220,000 Common Stock 396,000 Dividends Payable 396,000 b(2) Dividends Payable 396,000 4 Cash 396,000