Gracey's Department Stores has $212,000 of 6% noncumulative, preferred stock outstanding. Gracey's also has $612,000 of common stock outstanding. During its first year, the company paid cash dividends of $42,000. This dividend should be distributed as follows:

Multiple Choice

• $21,000 preferred; $21,000 common.

• $16,560 preferred; $25,440 common.

• $42,000 preferred; $0 common.

• $12,720 preferred; $29,280 common.

• $0 preferred; $42,000 common.

On June 1, Bender Corporation paid $136,000 cash to purchase Sheltons 270-day short-term debt securities ($136,000 principal), dated June 1, that pay 5% interest. These debt securities are classified as available-for-sale. On August 30, Bender receives a check from Shelton for 90 days interest on those debt securities. That August 30 journal entry for Bender includes a:

rev: 06_07_2021_QC_CS-266487

Multiple Choice

• Debit to Cash for $6,800.

• Credit to Gain on Sale for $3,400.

• Credit to Interest revenue for $1,700.

• Credit to Debt Investments for $3,400.

• Debit to Cash for $5,100.