Example: ABC Company has 9,000 shares of 4%, $10 par cumulative preferred stock and 47,000 shares of common stock outstanding. ABC declared no dividends in 2014 and 2015. In 2016, ABC declares a total dividend of $54,000. Calculate the allocation of dividends to the preferred and common shareholders and journalize the entries for the following dates:

(a) Declaration Date;

(b) Date of Record; and

(c) Payment Date.