Ehrlich Corporation has the following capital structure at the beginning of the year: 5% Preferred stock, $100 par value, 20,000 shares authorized, 6,000 shares issued and outstanding $ 600,000 Common stock, $10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding 400,000 Paid-in capital in excess of par 110,000 Total paid-in capital 1,110,000 Retained earnings 540,000 Total stockholders' equity $1,650,000 Instructions Record the following transactions (show all calculations). 1. The board of directors approved a $95,000 cash dividend for the preferred and common stockholders. Record the journal entries for the declaration and the payment of the dividend. 2. A 14% common stock dividend was declared. The average fair value of the common stock is $23 a share. Prepare the journal entry for the declaration of the dividend and for the distribution of the stock.