Example 3 On 1/1/2016 Kaisen Corporation issues 300 shares of 10%, $50 par value preferred stock for $17,500 cash. On 12/1/2018 Kaisen Corporation declares a $10,000 dividend. The dividend is payable on 12/31/2018 to stockholders of record on 12/15/2018. No dividends were declared or paid in 2016 or 2017 A) Show the journal entries to declare and pay this dividend if the PS is cumulative. B) Show the journal entries to declare and pay this dividend if the PS is noncumulative