Tara Corporation has the following capital structure at the beginning of the year:

5% Preferred stock, $50 par value, 20,000 shares authorized,

6,000 shares issued and outstanding$300,000

Common stock, $10 par value, 60,000 shares authorized,

40,000 shares issued and outstanding400,000

Paid-in capital in excess of par110,000

Total paid-in capital810,000

Retained earnings440,000

Total stockholders' equity$1,250,000

Required:

Prepare journal entries to record the following:

(a) A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.

(b) A 15% common stock dividend was declared. The average fair value of the common stock is

$25 per share.