s$13-7$ S$13-7$ Accounting for cash dividends Java Company earned net income of $$85,000$ during the year ended December $31,2018.$ On December $15,$ Java declared the annual cash dividend on its $4\%$ preferred od stock $($par value, $$120,000)$ and a $$0\mathrm{.}25$ per share cash dividend on its common st $(50,000$ shares$).$ Java then paid th dividends on January $4,2019.$