Madison Company earned net income of 75000 during the year ended December 31, 2016. on December 20, Madison declared the annual cash dividend on its 8% preferred stock (par value, 150,000) and a 0.50 per share cash divided on its common stock (45000 shares). Madison then paid the dividends on January 10, 2017. Prepare the journal entries to record the declaration and the distribution of the dividends.