Proble Gommon and preferred stock$-$issuances and dividends Homestead Oil Corp. was incorporated on

$8\mathrm{.}25$ January $1,2022,$ and issued the following stock for cash:

LO $8-1,$

$8-2,8-3$

$600,000$ shares of no$-$par common stock were authorized; $120,000$ shares were issued on January $1,$

$2022,$ at $$26$ per share.

$100,000$ shares of $$100$ par value, $5\mathrm{.}5\%$ cumulative, preferred stock were authorized; $70,000$ shares

were issued on January $1,2022,$ at $$109$ per share.

$,$ Net income for the years ended December $31,2022$ and $2023$ was $$2,100,000$ and $$4,700,000,$

respectively.

No dividends were declared or paid during $2022.$ However, on December $27,2023,$ the board of

directors of Homestead declared dividends of $$1,190,000,$ payable on February $11,2024,$ to holders of

record as of January $16,2024.$

Required:

a$.$ Use the horizontal model $($or write the entry$)$ to show the effects of:

The issuance of common stock and preferred stock on January $1,2022.$

The declaration of dividends on December $27,2023.$

The payment of dividends on February $11,2024.$

b$.$ Of the total amount of dividends declared during $2023,$ how much will be received by preferred

shareholders?