Part 3. Cash Dividends On November 23, Wheelhouse Entertainment declares a $180,000 dividend. Wheelhouses common stock has a $6 par value and 65,000 shares outstanding. Its preferred stock is 4%, $11 par, and 30,000 shares outstanding. Cope did not pay dividends for two years prior to the current year. The dividend is to be paid on December 31.

a. Prepare the journal entries for the declaration and payment of the dividend if the preferred stock is cumulative. Hint: Determine the preferred stock payment first. Enter your answers in the shaded boxes.

General Journal Date Account Names Debit Credit Nov 23 To record declaration of dividend General Journal Date Account Names Debit Credit Dec 31 To record payment of dividend

b. Prepare the journal entries for the declaration and payment of the dividend if the preferred stock is noncumulative. Hint: Determine the preferred stock payment first. Enter your answers in the shaded boxes. General Journal Date Account Names Debit Credit Nov 23 To record declaration of dividend General Journal Date Account Names Debit Credit Dec 31 To record payment of dividend