The books of Blue Corporation carried the following account balances as of December $31,2025.$

The company decided not to pay any dividends in $2025.$

The board of directors, at their annual meeting on December $21,2026,$ declared the following: "The current year

dividends shall be $6\%$ on the preferred and $$0\mathrm{.}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 $$12$ per share. Net income for $2026$ is estimated at $$81,400.$

a$.$ Prepare the journal entries required for the dividend declaration and payment, assuming that they occur

simultaneously. $($List all debit entries before credit entries. Credit account titles are automatically

indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No

Entry$-$ for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

For preferred dividends in arrears:

For preferred current year dividend:

For common share dividend: