I Question 6: Shareholders' Equity PART A: Guildwood Corporation earned net income of $70,000 during the year ended December 31, 2016. On December 15, 2016, Guildwood had declared the annual cash dividend on its $0.50 preferred shares (10,000 shares issued for $100,000) and a $0.60 per share cash dividend on its common shares (25,000 shares issued for $50,000. Guildwood then paid the dividends on January 4, 2017. Required: Prepare the journal entries to record the declaration of the cash dividend, and the subsequent payment of the cash dividend PART B: JetNew has the following shares outstanding since their initial offering: 50,000 shares of $2.00 cumulative preferred shares 50,000 common shares issued at $15 each The board of directors has declared the following cash dividends: 2015 none 2016 $50,000 2017 $75,000 2018 $150,000 2019 $300,000 Required: Complete the table below indicating the split of the declared dividends between common shareholders and preferred shareholders each year