Fox Ltd. has been incorporated for four years. The following is the equity section of the company's Balance Sheet on January 1, 2020: Contributed Capital: Preferred Shares, $7, cumulative, 50,000 authorized, 6,000 issued and outstanding Common Shares, unlimited authorized, 43,000 issued and outstanding Total Contributed Capital Retained Earnings Total Shareholders' Equity $120,000 430.000 $550,000 385.000 $935.000 During the year, the following equity transactions occurred: Mar. 15 Issued 5,000 common shares at $10 each for cash. Jul. 4 Paid a legal bill of $20,000 by issuing 900 common shares. Sep. 1 Board of Directors declared a cash dividend of $130,000 to be paid to shareholders of record at September 15, and distributed on September 30. The company did not declare or pay dividends in 2019. Dec. 1 Issued 600 preferred shares for $21 each for cash. Dec. 31 Prepare a closing entry related to the cash dividend, if necessary. 1. Prepare the journal entries to record the above transactions. Show all your calculations. 2. Assume instead that the preferred shares are non-cumulative. How much of the $130,000 cash dividend would be given to each class of shareholders? REQUIRED: