The question is as follows:

Record the journal entries for the following facts:

a.500 shares of common stock outstanding.

b.600 shares of $100 six percent cumulative preferred stock have been outstanding since 2016.

c.800 shares of $100 seven percent non-cumulative preferred stock have been outstanding since 2010.

d.Neither preferred stock is subordinate to the other.

e.The common shareholders received a dividend in 2017.

f.Dividends in 2018 were $5,000.

g.Dividends declared by the board of directors were $16,000 in 2019.

h.The dividends were paid twelve days after the board of directors declared them.

I believe the problem wants me to set up the breakdown of the various dividends accounts, to eventually reach a total of $16,000 that will be paid as the last two journal entries, but I'm unsure of how to get there.