Question 3 of 5 -/10 View Policies Current Attempt in Progress Sarasota Company reported the following amounts in the stockholders' equity section of its December 31, 2019. balance sheet. Preferred stock, 10%, 5100 par (10,000 shares authorized 2 200 shares issued) $220,000 Common stock. $5 par (100,000 shares authorized 20,000 shares issued) 100.000 Additional paid-in capital 135,000 Retained earnings 436.000 $89.000 Total During 2020, Sarasota took part in the following transactions concerning stockholders' equity. 1 2. 3 4 Paid the annual 2019 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019, Purchased 1,900 shares of its own outstanding common stock for $39 per share. Sarasota uses the cost method. Reissued 700 treasury shares for land valued at $29,500. Issued 450 shares of preferred stock at $105 per share. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $46 per share. Issued the stock dividend Declared the annual 2020 $10 per share dividend on preferred stock and the $2 per share dividend on common stock These dividends are payable in 2021 5 6 7 (a) Prepare journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) No. Account Titles and Explanation Debit Credit Dividends Payable-Preferred No. Account Titles and Explanation Debit Debit Credit 1 Dividends Payable - Preferred > 22000 Dividends Payable Common > 40000 Cash 62000 2 Treasury Stock 27300 Paid in Capital trom Treasury Stock 9400 Paid-in Capital in Excess of Par. Preferred Stock 77080 6. Common Stock Dividend Distributable 9400 7 Retained Earning Dividends Payable-Common Dividends Payable-Preferred e Textbook and Media