The amount of dividends paid to preferred and common shareholders in year 3 is: A) $7,000 preferred; S25,000 common B) S5,000 preferred; S27,000 common. C) S15,000 preferred; S17,000 common D) $32,000 preferred; $0 common. E) S0 preferred; S32,000 common. 8) Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 400 shares to its attorneys in payment of a S5,000 charge for drawing up the articles of incorporation. The journal entry to record this transaction is