This is a financial reporting question. Can somone explain how they got 78000 for dividends payable in number 1 of part A and common stockdividend distributable of 60000 in number 2? The answers are given

Pr. 15-145-Equity transactions Foley Corporation has the f following capital structure at the beginning of the year 4%Preferred stock $50 par value, 20,000 shares 6,000 shares issued and outstanding Common stock, $50 par value, 20,000 shares authorized stock, $10 par value, 60,000 shares authorized $ 300,000 400,000 810,000 40,000 shares issued and outstanding Paid-in capital in excess of par Total paid-in capital Retained earnings Total stockholders' equity 40,000 Instructions (a) R ecord the following transactions which occurred consecutively (show all calculations) Record dividends payable on common and preferred stock in separate accounts 1. A total cash dividend of $90,000 was declared and payable to stockholders of record A 15% common stock dividend was declared. The average fair value of the common stock is $22 a share. 2. 3. Assume that net income for the year was $140,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion. (b) Construct the stockholders' equity section incorporating all the above information. Solution 15-145 (a) 1. Retained Earnings 90,000 Dividends Payable-Preferred ($300,000 x .04 Dividends Payable-Common. 12,000 78,000 c... 2. 40,000 shares 6,000 shares as stock dividend $132,000 total dividend 132,000 60,000 72,000 Retained Earnings Common Stock Dividend Distributable... Paid-in Capital in Excess of Par.. Retained Earnings Retained Earnings Appropriated for Plant Expansion .. 140,000 3. Income Summary 140,000 70,000 Retained Earnings 70,000