The books of Ayayai Corporation carried the following account balances as of December 31, 2017.

Cash		$ 210,000
Preferred Stock (6% cumulative, nonparticipating, $50 par)		310,000
Common Stock (no-par value, 284,000 shares issued)		1,420,000
Paid-in Capital in Excess of ParPreferred Stock		157,000
Treasury Stock (common 2,900 shares at cost)		31,300
Retained Earnings		106,100

The company decided not to pay any dividends in 2017. The board of directors, at their annual meeting on December 21, 2018, declared the following: The current year dividends shall be 6% on the preferred and $0.30 per share on the common. The dividends in arrears shall be paid by issuing 1,550 shares of treasury stock. At the date of declaration, the preferred is selling at $80 per share, and the common at $12 per share. Net income for 2018 is estimated at $81,400. (a) Prepare the journal entries required for the dividend declaration and payment, assuming that they occur simultaneously.

For Preferred dividends in arrears:

For preferred current year dividend:

For common share dividend:

(b) Could Ayayai Corporation give the preferred stockholders 2 years dividends and common stockholders a 30 cents per share dividend, all in cash?