Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the account on Dec. 31 that should be recorded in the Description column of the Journal item (1) as the account to be debited and the amount assuming that Smart Corp. paid the annual dividend on the preferred stock with 4,000 shares of the preferred stock having been issued. Sunshine Corp. is not declaring a dividend on the Common Stock.

DATE	DESCRIPTION	PREF	DEBIT	CREDIT
Dec. 31	(1) ?		?
	(2)