Eastern Inc.'s equity includes 8%, $25 par preferred stock. There are 100,000 shares authorized and 45,000 shares outstanding. Assume that Eastern declares and pays preferred dividends quarterly. Required: 1. Prepare the journal entry to record declaration of one quarterly dividend. 2. Prepare the journal entry to record payment of the one quarterly dividend. CHART OF ACCOUNTS Eastern Inc.'s General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 112 Petty Cash 412 Service Revenue 121 Accounts Receivable 413 Interest Income 414 Rent Revenue 123 Allowance for Doubtful Accounts 124 Notes Receivable EXPENSES 511 Cost of Goods Sold 125 Supplies 126 Prepaid Insurance 127 Prepaid Rent 128 Inventory 129 Interest Receivable 130 Investment 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 515 Insurance Expense 516 Service Charge Expense 517 Bad Debt Expense 131 Land 132 Buildings 122 musimont 518 Rent Expansa 133 Equipment 134 Furniture 518 Rent Expense 521 Wages Expense 531 Interest Expense 135 Trucks 139 Accumulated Depreciation 141 Leased Assets 541 Depreciation Expense 551 Income Taxes Expense 552 Legal Expense LIABILITIES 211 Accounts Payable 212 Utilities Payable 213 Insurance Payable 214 Wages Payable 215 Rent Payable 221 Interest Payable 223 Income Taxes Payable 231 Dividends Payable 232 Unearned Sales Revenue 233 Unearned Rent Revenue 241 Bonds Payable 251 Notes Payable EQUITY 311 Common Stock 312 Additional Paid-In Capital-Common Stock 313 Preferred Stock 314 Additional Paid-In Capital-Preferred Stock 315 Treasury Stock 316 Additional Paid-In Capital-Treasury Stock 321 Retained Earnings 331 Dividends 2. Prepare the journal entry to record payment of the one quarterly dividend on December 31. General Journal Instructions GENERAL JOURNAL DATE ACCOUNT TITLE POST. REE 1 DEBIT CRI 2 IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NE