Sara Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value

2017 10,000 2018 30,000 2019 70,000

R Sara Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred atock and 400,000 shares of $1 par valve common stock. At Dec S T 2017 $10,000 2018 $30.000 2019 $70,000 Instructions Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and not cumulative. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative. Journalize the declaration of the cash dividend at December 31, 2019 using the assumption of part (b). Explain the difference between cumulative or noncumulative stocks. @223 Solution (d) cumulative stocks Doneumolatives stocks Solution (a) 2017 2018 Solution (b) 2018 Item 2019 Item Solution to Accounts Debit