Lake Enterprises has both common and preferred stock. There are $45,000$ shares of $$3$ par common stock

outstanding and $2,000$ shares of $$25$ par, $7\%$ cumulative preferred stock outstanding. The company did not

pay any dividends last year. On June $1$ of this year, the Board of Directors voted to give a $$10,500$ cash

dividend to stockholders of record by June $15.$ The dividend would be paid on July $1.$

a$)$ Calculate the amount of the dividend to be paid to each class of shareholders.

b$)$ Prepare journal entries to record the declaration and payment of the dividends $($Hint: use the Account

List $-$ click to pop open to help you with your journal entries$).$