The books of Conchita Corporation carried the following account balances as of December 31, 2014.

Cash	$202,200
Preferred Stock (6% cumulative, nonparticipating, $50 par)	300,000
Common Stock (no-par value,298,900shares issued)	1,494,500
Paid-in Capital in Excess of ParPreferred Stock	181,600
Treasury Stock (common3,000shares at cost)	37,600
Retained Earnings	121,200

The company decided not to pay any dividends in 2014.

The board of directors, at their annual meeting on December 21, 2015, declared the following: The current year dividends shall be6% on the preferred and $0.30per share on the common. The dividends in arrears shall be paid by issuing1,800shares of treasury stock. At the date of declaration, the preferred is selling at $85per share, and the common at $10per share. Net income for 2015 is estimated at $77,910.

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