Objective: To record cash dividends on cumulative preferred and common stock The New Horizons Development corporation has stock outstanding as follows: 10, 000 shares of $100 par, 8% cumulative preferred stock and 25, 000 shares of $7 par common stock. Directions: On January 8, 20 times 2, the board of directors declared a $450, 000 cash dividend. Record the declaration under each of the following separate assumptions: (a) No dividends were in arrears. (b) Dividends were in arrears for two years Objective: To record stock dividends Superior Natural Foods Company has 12, 000 shares of $20 par common stock outstanding. On May 1 , 20 times 1, the firm's board of directors declared a 10% stock dividend to stockholders of record on May 15, distributable on June 1. The stock is selling for $45 a share on May 1. Directions: Journalize the necessary entries to declare and distribute the stock dividend Objective: To record dividend transactions On January 1, 20 times 3, Sterling Corporation had 200, 000 shares of $5 par value common stock outstanding. The company's dividend transactions for the year were as follows: 20 times 3 Jan. 15 Declared a cash dividend of $0.50 a share. Feb. 10 Paid the cash dividend declared on January 15 Jan, 18 Declared a 10% stock dividend. The stock has a current market value of $3 per share. Jul. 15 Distributed the stock dividend declared on June 18. Nov.12 Declared a cash dividend of $0.50 a share per share. Dec. 15 Paid the cash dividend declared on November 12. Directions: Record these transactions in general journal form