Timber Ridge Corporation was organized on January 1, 2018. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends:

2018 $8,000

2019 $30,000

2020 $70,000

Journalize the declaration of the cash dividend at December 31, 2020 using the assumption of part (b)

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 5% and not cumulative.

Preferred

Common

Total

2018$

$

$

2019

2020