The stockholders' equity section of Khan Corporation's balance sheet at January 1, 2018 was as follows. Both preferred stock and common stock have no par or stated value. Khan Corporation Balance Sheet (partial) As at January 1, 2018 Stockholders' Equity Paid-In Capital Preferred Stock, $4 non-cumulative, 160,000 authorized, 1,600, issued and outstanding $237,000 Common Stock, unlimited authorized, 28,000 issued and outstanding $1,490,000 Total Paid-In Capital $1,490,000 Retained Earnings $273,000 Total Stockholders' Equity $1,763,000 No dividend was declared for common stockholders. However on December 15, 2018, the directors decided to pay dividends to preferred stockholders. The dividend payment date was December 28, 2018. Income before income tax for the year was $200,000. Income tax expense for the year was $40,000 The company uses the retained earnings method to record dividends. a) Calculate the amount of dividend to be paid to preferred stockholders. Dividends Payable: $ b) Prepare journal entry for declaration and payment of preferred dividend. Date Account Title and Explanation Debit Credit Dec 15 Dividend payable on preferred shares Dec 28 Recording payment of dividend c) Calculate the ending balance of retained earnings for the year ended December 31, 2018. Do not use the negative sign. Khan Corporation Statement of Retained Earnings For the Month Ended December 31, 2018 Opening Balance Add: Net Income Less: Cash Dividends Balance - December 31, 2018