The following selected financial information was extracted from the December 31, 2020, financial records of Moratti Company: Credit Debit 393,000 110.000 Cash Preferred shares (unlimited authorized, 10% non-cumulative dividend, 55,000 shares issued) Common shares (393,000 shares authorized, 55,000 issued) Retained earnings (before closing entries) Net income loss for 2020 245,000 137,000 102,000 The company's board of directors is contemplating declaring a dividend on common shares. The company's common shares are currently selling for $7 per share. Moratti's board is also expected to declare a preferred shared dividend of 10%. Moratti is considering a cash dividend and would like to maximize the size of its dividend. Determine how large a cash dividend the board of directors can consider. Cash dividend List of Accounts How large a stock dividend can the board legally declare on the company's common shares? Stock dividend $ Prepare journal entries for the maximum dividend in each of parts a and b above including closing entries for net loss and dividends declared and paid on preferred shares. (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 O for the amounts.) Debit Credit Account Titles and Explanation i. Cash dividend: (To record cash dividend) (To close dividends declared accounts) (To close income summary) ii. Stock dividend: (To record cash dividend) (To close income summary) ii. Stock dividend: (To record cash dividend) (To record stock dividend) (To close dividends declared accounts) (To close income summary) The following selected financial information was extracted from the December 31, 2020, financial records of Moratti Company: Credit Debit 393,000 110.000 Cash Preferred shares (unlimited authorized, 10% non-cumulative dividend, 55,000 shares issued) Common shares (393,000 shares authorized, 55,000 issued) Retained earnings (before closing entries) Net income loss for 2020 245,000 137,000 102,000 The company's board of directors is contemplating declaring a dividend on common shares. The company's common shares are currently selling for $7 per share. Moratti's board is also expected to declare a preferred shared dividend of 10%. Moratti is considering a cash dividend and would like to maximize the size of its dividend. Determine how large a cash dividend the board of directors can consider. Cash dividend List of Accounts How large a stock dividend can the board legally declare on the company's common shares? Stock dividend $ Prepare journal entries for the maximum dividend in each of parts a and b above including closing entries for net loss and dividends declared and paid on preferred shares. (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 O for the amounts.) Debit Credit Account Titles and Explanation i. Cash dividend: (To record cash dividend) (To close dividends declared accounts) (To close income summary) ii. Stock dividend: (To record cash dividend) (To close income summary) ii. Stock dividend: (To record cash dividend) (To record stock dividend) (To close dividends declared accounts) (To close income summary)