On January $1,$ Crane Corporation had $58,600$ shares of no$-$par common stock issued and outstanding. The stock has a stated value of $$4$ per share. During the year, the following transactions occurred.

Apr. $1$ Issued $9,600$ additional shares of common stock for $$10$ per share.

June $15$ Declared a cash dividend of $$1\mathrm{.}40$ per share to stockholders of record on June $30.$

July $10$ Paid the $$1\mathrm{.}40$ cash dividend.

Dec. $1$ Issued $4,000$ additional shares of common stock for $$13$ per share.

$15$ Declared a cash dividend on outstanding shares of $$1\mathrm{.}50$ per share to stockholders of record on December $31.$

Date

Account Titles and Explanation

Debit

Credit

Cash Dividends

Dividends Payable

Dividends Payable

$95,480$

Cash

Cash Dividends

$108,300$

Dividends Payable

$108,300$

$($b$)$

How are dividends and dividends payable reported in the financial statements prepared at December $31?$

On the retained earnings statement, dividends of $ $$ will be deducted. On the balance sheet, Dividends Payable of $ $$ will be reported as a $$

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