Greenland

Corporation earned net income of

$150,000

during the year ended December 31,

2021.

On December 15,

Greenland

declared the annual cash dividend on its

7%

preferred stock

(25,000

shares with total par value of

$250,000)

and a

$0.10

per share cash dividend on its common stock

(35,000

shares with total par value of

$350,000).

Greenland

then paid the dividends on January 4,

2022.

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Part 1

a. Journalize for

Greenland

Corporation the declaration for the cash dividends on December 15,

2021.

(Record debits first, then credits. Exclude explanations from any journal entries. Use only a single account to record the dividends.)

Journal EntryDateAccountsDebitCredit2021 Dec15

b.Paying the cash dividends on January 4, 2022

Did retained earnings increase or decrease during

2021?

By how much?