The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $$120,000$ in the current year. It also declared and paid dividends on common stock in the amount of $$2\mathrm{.}20$ per share. During the current year, Sneer had $1$ million common shares authorized; $320,000$ shares had been issued; and $118,000$ shares were in treasury stock. The opening balance in Retained Earnings was $$820,000$ and Net Income for the current year was $$320,000.$

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.