Homestead Oil Corporation was incorporated on January $1,2022,$ and issued the following stock for cash:

$740,000$ shares of no$-$par common stock were authorized; $150,000$ shares were issued on January $1,2022,$ at $$17\mathrm{.}00$ per share.

$290,000$ shares of $$110$ par value, $8\mathrm{.}00\%$ cumulative, preferred stock were authorized; $73,000$ shares were issued on January $1,2022,$ at $$140$ per share.

Net income for the years ended December $31,2022$ and $2023$ was $$1,280,000$ and $$2,430,000,$ respectively.

No dividends were declared or paid during $2022.$ However, on December $27,2023,$ the board of directors of Homestead declared dividends of $$1,750,000,$ payable on February $11,2024,$ to holders of record as of January $16,2024.$

Problem $8-25($Algo$)$ Part a $-$ Horizontal Model

Required:

Use the horizontal model for the issuance of common stock and preferred stock on January $1,2022.$ Indicate the financial statement effect.

Use the horizontal model for the declaration of dividends on December $27,2023.$ Indicate the financial statement effect.

Use the horizontal model for the payment of dividends on February $11,2024.$ Indicate the financial statement effect.