The following share capital information is available for a corporation with an April 30, 2018 year-end:

The shares were issued when the corporation began operations on May 1, 2015. No dividends were declared during the fiscal years ended 2016 and 2017. On February 28, 2018, the board of directors declares the required preferred share dividends and a $0.55 dividend for each of the common shares. The dividends are payable on April 1, 2018, to the shareholders of record on March 15, 2018.

Pref Shares, $2.50 cumulative, 2400 shares issued            1,000,000

Pref Shares, $3.00 non-cumulative, 13,000 shares issued   600,000

Common Shares, 150,000 shares issued                                  367,500

a) How much will be paid to each class of shares?

b) Prepare journal entries on the appropriate dates for the 2018 dividends.

c) Assume instead that the maximum cash dividend the company can pay $385,000. Determine how much will be paid to the preferred shareholders and to the common shareholders.