Read the requirements.

dividend on the "total dividend to preferred stockholders" line.$)$

New England's $2024$ dividend would be divided between preferred and common stockholders in this manner:

Total Dividend$-2024$

Dividend to preferred stockholders:

Dividend in arrears

Current year dividend

Total dividend to preferred stockholders

Dividend to common stockholders

New England's $2025$ dividend would be divided between preferred and common stockholders in this manner:

$\backslash$table$[[$Total Dividend$-2025],[$Dividend to preferred stockholders:$],[$Dividend in arrears$],[$Current year dividend$],[$Total dividend to preferred stockholders$],[$Dividend to common stockholders$]]$

Requirements

Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for $2024$ and $2025$ if total dividends are $$5,640$ in $2024$ and $$54,000$ in $2025.$ Assume no changes in preferred stock and common stock in $2025.$

Record the journal entries for $2024,$ assuming that New England Communications declared the dividend on December $1$ for stockholders of record on December $10.$ New England Communications paid the dividend on December $20.$

Data table

$\backslash$table$[[$Stockholders$\text{'}$ Equity$],[$Paid$-$In Capital:,,$],[\backslash$table$[[$Preferred Stock$-4\%,$ $$8$ Par Value; $150,000$ shares$],[$authorized$,27,000$ shares issued and outstanding$]],$$$,216,000],[\backslash$table$[[$Common Stock$-$$$4$ Par Value; $575,000$ shares$],[$authorized$,350,000$ shares issued and outstanding$]],,1,400,000$