[The following information applies to the questions displayed below.] Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash: 800,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2016, at $38 per share. 200,000 shares of $100 par value, 6.5% cumulative, preferred stock were authorized, and 90,000 shares were issued on January 1, 2016, at $122 per share. Net income for the years ended December 31, 2016 and 2017, was $2,600,000 and $5,600,000, respectively. No dividends were declared or paid during 2016. However, on December 28, 2017, the board of directors of Homestead declared dividends of $3,600,000, payable on February 12, 2018, to holders of record as of January 19, 2018. Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2016. (Use amounts with + for increases and amounts with for decreases.) Balance Sheet Liabilities Income Statement Revenues Assets Stockholders' Equity Net Income Expenses = 2. Use the horizontal model for the declaration of dividends on December 28, 2017. (Use amounts with + for increases and amounts with - for decreases.) Balance Sheet Liabilities Income Statement Revenues Assets Stockholders' Equity Net Income Expenses 3. Use the horizontal model for the payment of dividends on February 12, 2018. (Use amounts with + for increases and amounts with for decreases.) Balance Sheet Liabilities Income Statement Revenues Assets + Stockholders' Equity Net Income Expenses Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. The issuance of common stock and preferred stock on January 1, 2016. 2. The declaration of dividends on December 28, 2017. 3. The payment of dividends on February 12, 2018. View transaction list Journal entry worksheet Record stock issuances. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2016 Record entry Clear entry View general Journal b. Of the total amount of dividends declared during 2017, how much will be received by preferred shareholders? Dividends received by Preferred shareholders [The following information applies to the questions displayed below.] Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash: 800,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2016, at $38 per share. 200,000 shares of $100 par value, 6.5% cumulative, preferred stock were authorized, and 90,000 shares were issued on January 1, 2016, at $122 per share. Net income for the years ended December 31, 2016 and 2017, was $2,600,000 and $5,600,000, respectively. No dividends were declared or paid during 2016. However, on December 28, 2017, the board of directors of Homestead declared dividends of $3,600,000, payable on February 12, 2018, to holders of record as of January 19, 2018. Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2016. (Use amounts with + for increases and amounts with for decreases.) Balance Sheet Liabilities Income Statement Revenues Assets Stockholders' Equity Net Income Expenses = 2. Use the horizontal model for the declaration of dividends on December 28, 2017. (Use amounts with + for increases and amounts with - for decreases.) Balance Sheet Liabilities Income Statement Revenues Assets Stockholders' Equity Net Income Expenses 3. Use the horizontal model for the payment of dividends on February 12, 2018. (Use amounts with + for increases and amounts with for decreases.) Balance Sheet Liabilities Income Statement Revenues Assets + Stockholders' Equity Net Income Expenses Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. The issuance of common stock and preferred stock on January 1, 2016. 2. The declaration of dividends on December 28, 2017. 3. The payment of dividends on February 12, 2018. View transaction list Journal entry worksheet Record stock issuances. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2016 Record entry Clear entry View general Journal b. Of the total amount of dividends declared during 2017, how much will be received by preferred shareholders? Dividends received by Preferred shareholders