Identifying and Analyzing Financial Statement Effects of Cash Dividends Freid Corp. has outstanding 6,000 shares of $50 par value, 6% preferred stock, and 40,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year-end, the company declares and pays the regular $3 per share cash dividend on preferred stock and a $2.20 per share cash dividend on common stock. a. Using the financial statement effects template, illustrate the effects of these two dividend payments. Use a negative sign with your answers, when appropriate. Balance Sheet Income Statement Noncash Contrib Transaction Cash Asset + Asset = Liabilities + Capital Capital Revenues Expenses - Net Income 12/31 Declared and paid cash dividend on preferred stock $ + $ 12/31 Declared and paid cash dividend on common stock Earned $ $ b. Prepare the journal entries for the two dividend payments. Date Description Debit Credit (1) 12/31 Record preferred dividend (2) 12/31 Record comman dividend C. Post the journal entries from b to the related T-accounts. Cash (A) Retained Earnings (SE) (1) 12/31 (1) 12/31 (2) 12/31 (2) 12/31