[The following information applies to the questions displayed below.] Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:

• 840,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2019, at $19.00 per share.
• 230,000 shares of $110 par value, 8.50% cumulative, preferred stock were authorized; 75,000 shares were issued on January 1, 2019, at $150 per share.
• Net income for the years ended December 31, 2019 and 2020 was $1,220,000 and $2,610,000, respectively.
• No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,870,000, payable on February 12, 2021, to holders of record as of January 19, 2021.

Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

3. Use the horizontal model for the payment of dividends on February 12, 2021. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)