The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $150,000 in the current year. It also declared and paid dividends on common stock in the amount of $2.50 per share. During the current year, Sneer had 1 million common shares authorized; 350,000 shares had been issued; and 145,000 shares were in treasury stock. The opening balance in Retained Earnings was $850,000 and Net Income for the current year was $350,000.

1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock.

2. Using the information given above, prepare a statement of retained earnings for the year ended December 31

3.Prepare a journal entry to close the dividends account.