Earlgrey Company earned net income of $$92,000$ during the year ended December $31,2018.$ On December $15,$ Earlgrey declared the annual cash dividend on its $5\%$ preferred stock $($par value, $$130,000)$ and a $$0\mathrm{.}50$ per share cash dividend on its common stock $(52,000$ shares$).$ Earlgrey then paid the dividends on January $4,2019.$

Read the requirements.

Requirement $1.$ Journalize for Earlgrey the entry declaring the cash dividends on December $15,2018.($Record debits first, then credits. Select the explanation on the last line of the journal entry table.$)$

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[2018,$Requirements,,$],[$Dec$.15,,\backslash$table$[[1.$ Journalize for Earlgrey the entry declaring the cash dividends on December $15,],[2018.],[2.$ Journalize for Earlgrey the entry paying the cash dividends on January $4,2019.]],]]$