Melville Corporation was organized on January 1, 2015. During its first year, the corporation issued 18,000 shares of $50 par value preferred stock and 1,000,000 shares of $10 par value common stock. At December 21, the company declared the following cash dividends: 2015, $55,000; 2016, $100,000; and 2017, $185.000.

Instructions:

(a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividends is 7% and noncumulative.

(b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative.

(c) Journalize the declaration of the cash dividend at December 31, 2017, under part (b).