The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $180,000 in the current year. It also declared and paid dividends on common stock in the amount of $2.80 per share. During the current year, Sneer had 1 million common shares authorized; 380,000 shares had been issued; and 172,000 shares were in treasury stock. The opening balance in Retained Earnings was $880,000 and Net Income for the current year was $380,000. Required:

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.

Journal entry worksheet 2 3 4 Record the declaration of a cash dividend of $180,000 to the preferred stockholders Note: Enter debits before credits. Debit Transaction General Journal Credit View general journal Record entry Clear entry Journal entry worksheet 4 2 Record the declaration of a cash dividend of $2.80 per share to the common stockholders payable on the shares outstanding. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 4 Record the payment of the cash dividend to the common stockholders. Note: Enter debits before credits Transaction General Journal Debit Credit b(2) View general journal Record entry Clear entry Using the information given above, prepare a statement of retained earnings for the year ended December 31 SNEER CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 Retained Earnings, December 31 Journal entry worksheet Record the entry to close the dividends account Note: Enter debits before credits. Credit Transaction General Journal Debit View general journal Record entry Clear entry