John Corp had the following shareholders equity at January 1, 2023.

$5 Preferred Shares, $100 par value, cumulative and fully participating, 10,000 shares authorized, 8,000 issued and outstanding = $800,000

Common Shares, 300,000 shares authorized, 200,000 issued and outstanding = 620,000

Contributed surplus (common) 6,000 Retained Earnings = 950,000

Prepare journal entries for each of the following transactions.

June 20

Accepted subscriptions for 4,000 common shares. Received a 40% down payment with the remainder due in two months. The subscription price was $10 per share.

August 20

Received remaining payment on all but 500 of the subscribed and issued 4,500 common shares. The subscriber to the 500 has defaulted as he is not able to pay and the partial payment was forfeited and kept by Buttercup Corp.

September 1

Sold 1,500 shares of preferred for cash.

September 23

Purchased and retired 2,000 common shares at $3 per share.

September 30

Declared a 5% common stock dividend. Market value is $6

b) John declared $300,000 of dividends on November 15. Dividends on the preferred shares are one year in arrears. Show the amount of dividends to be paid to the preferred shareholders and the common shareholders.