Question 6 The Shareholders' Equity section of Halfast Ltd.'s balance sheet as of December 31, 2020, appeared as follows: Preferred stock, $7 no par, 5,000 shares issued and outstanding $500,000 Common stock, 5,000 no par shares issues and 350,000 outstanding Total contributed capital 850,000 Retained earnings 400,000 Total shareholders' equity $1,250,000 The notes that accompany the financial statements indicate that Halfast has not paid dividends for the three years prior to 2021. On July 1, 2021, Halfast declares a dividend of $150,000 to be paid to preferred and common shareholders on August 1. Required 1. Determine the amounts of the dividend to be allocated to preferred and common shareholders, assuming that the preferred stock is non-cumulative. 2. Record the appropriate journal entries to record the dividends calculated in 1. 3. Determine the amounts of the dividend to be allocated to preferred and common shareholders, assuming instead that the preferred shares are cumulative.