Sarah Co. has the following stockholders' equity for 12/31/2019: 25,000 A 1,400 26,400 Preferred stock, 8%, $50 par, 8,000 shares authorized, 500 shares issued and outstanding Common stock, $.20 par, 10,000 shares authorized, 7,000 shares issued, and 6,700 shares outstanding Total capital stock Additional paid-in capital: Preferred Common Total paid-in capital Retained earnings Treasury Stock (300 shares at $25 cost) Total stockholders' equity 208,600 235,000 280,000 (7,500) 507,500 $ Required: Record the transactions listed and prepare the 2020 stockholders' equity section of the balance sheet. The company reported NI of $90,000 for 2020. (a) Record the transactions listed. (3) Declared and issued a 2:1 stock split on common stock when the common stock is selling at $40 per share. (4) Declared and immediately paid annual dividends of $10 and $2 per share for preferred and common, respectively. Show separately the calculations for total dividends paid to common and preferred following the journal entry. Sarah Co. has the following stockholders' equity for 12/31/2019: 25,000 A 1,400 26,400 Preferred stock, 8%, $50 par, 8,000 shares authorized, 500 shares issued and outstanding Common stock, $.20 par, 10,000 shares authorized, 7,000 shares issued, and 6,700 shares outstanding Total capital stock Additional paid-in capital: Preferred Common Total paid-in capital Retained earnings Treasury Stock (300 shares at $25 cost) Total stockholders' equity 208,600 235,000 280,000 (7,500) 507,500 $ Required: Record the transactions listed and prepare the 2020 stockholders' equity section of the balance sheet. The company reported NI of $90,000 for 2020. (a) Record the transactions listed. (3) Declared and issued a 2:1 stock split on common stock when the common stock is selling at $40 per share. (4) Declared and immediately paid annual dividends of $10 and $2 per share for preferred and common, respectively. Show separately the calculations for total dividends paid to common and preferred following the journal entry