Prepare a multiple-step income statement and the required journal entry to adjust income tax expense. E13.7 (LO 2. 4) AP Accentrics Limited has the following information available regarding its share capital at December 31, 2020: Determine split between preferred and common shares and record cash dividend transactions. Preferred shares, $3.50 cumulative, 20,000 shares issued $1,000,000 Preferred shares, $4.50 noncumulative, 10,000 shares issued 500.000 Common shares, 300,000 shares issued 1,500,000 The shares were issued when the corporation began operations on January 1, 2019. No dividends were declared during 2019 and 2020. On October 27, 2021, the board of directors declares the required preferred share dividends and a $0.50 dividend for each of the common shares. The dividends are payable on December 1, 2021, to the shareholders of record on November 16, 2021. Instructions a. How much will be paid to each class of shares? b. Prepare journal entries on the appropriate dates for the 2021 dividends. c. Assume instead that the maximum cash dividend the company can pay in 2021 is $200,000. Determine how much will be paid to the preferred shareholders and to the common shareholders