Indigo Ltd. is authorized to issue 10,000, $5 noncumulative preferred shares. On January 13, it issued 3,900 preferred shares for $75 cash per share.

Prepare the journal entry to record the transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 13	enter an account title to record issuance of shares on January 13	enter a debit amount	enter a credit amount
	enter an account title to record issuance of shares on January 13	enter a debit amount	enter a credit amount
	(To record issuance of shares.)

Determine the total amount of dividends that must be paid to the preferred shareholders prior to paying a dividend to common shareholders.

Total amount of dividends

$enter the Total amount of dividends in dollars