The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $$130,000$

in the current year. It also declared and paid dividends on common stock in the amount of $$2\mathrm{.}30$ per share. During the current year,

Sneer had $1$ million common shares authorized; $330,000$ shares had been issued; and $127,000$ shares were in treasury stock. The

opening balance in Retained Earnings was $$830,000$ and Net Income for the current year was $$330,000.$

Required:

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

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

Prepare a journal entry to close the dividends account.

Complete this question by entering your answers in the tabs below.

Prepare journal entries to record the declaration, and payment, of dividends on $($a$)$ preferred and $($b$)$ common stock. $($If no entry is

required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

Record the declaration of a cash dividend of $$130,000$ to the preferred

stockholders.