The equity section of the December 31, 2019, balance sheet for Delicious Alternative Desserts Inc. showed the following: Delicious Alternative Desserts Inc. Equity Section of the Balance Sheet December 31, 2019 Contributed capital: Preferred shares, $0.10 cumulative; 50,000 shares authorized: 20,000 shares issued and outstanding Common shares; 250,000 shares authorized: 120,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $244,000 193,600 $437,600 148,000 $585,600 During the year 2020, the company had the following transactions affecting equity accounts: Jan. 3 Sold 20,000 common shares for a total of $36,000 cash. Mar. 1 Sold 5,000 preferred shares at $4.90 each; cash. Dec.31 The board of directors have declared dividends of $320,000. The board of directors had not declared dividends for the past two years (2019 and 2020) Required: a. Journalize the above transactions as if the preferred shares have cumulative dividends b. Journalize the above transactions as if the preferred shares have non cumulative dividends