Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash 730,000 shares of no-par common stock were authorized: 150,000 shares were issued on January 1, 2016. at $18.00 per share. 250,000 shares of $110 par value, 7.50% cumulative, preferred stock were authorized, and 57,000 shares were issued on January 1, 2016, at $140 per share. Net income for the years ended December 31, 2016 and 2017, was $1,450,000 and $2,580,000, respectively. No dividends were declared or paid during 2016. However, on December 28, 2017, the board of directors of Homestead declared dividends of $1,680,000, payable on February 12, 2018, to holders of record as of January 19, 2018. 5. value 1.11 points Required information Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2016. (Use amounts with + for increases and amounts with for decreases.) Balance Sheet Liabilities Income Statement Revenues Assets Net Income Expenses 7,980,000/= Stockholders' Equity + Common stock 6,270,000 + Additional paid-in capital 1.710.000 + Preferred stock 2. Use the horizontal model for the declaration of dividends on December 28, 2017. (Use amounts with + for increases and amounts with - for decreases.) Balance Sheet Income Statement Assets Net Income = Revenues Expenses Liabilities 1 - Dividends payable Stockholders' Equity Retained earnings 2. Use the horizontal model for the declaration of dividends on December 28, 2017. (Use amounts with + for increases and amounts with for decreases.) Balance Sheet Income Statement Revenues Assets + - Net Income - - Expenses Liabilities - Dividends payable Stockholders' Equity Retained earnings 3. Use the horizontal model for the payment of dividends on February 12, 2018. (Use amounts with + for increases and amounts with - for decreases.) Balance Sheet Liabilities Additional pad-in capital Income Statement Revenues Stockholders' Equity - Net Income - - Expenses Cash b. Of the total amount of dividends declared during 2017, how much will be received by preferred shareholders? Dividends received by Preferred shareholders References eBook & Resources Worksheet Learning Objective: 08-01 Describe the characteristics of common stock and show how common stock is presented in the balance sheet. Difficulty: 2 Medium Learning Objective: 08-02 Explain what preferred stock is, discuss what its advantages and disadvantages to the corporation are, and show how it is presented in the balance sheet. Check my work