Use the following information to answer parts A through C:

Wildcat Corporation was formed on January 1, 2019 by selling and issuing 20,000 shares of common stock at $15 per share. On December 1, 2019, the Company declared a cash dividend of $10,000, which will be paid in cash on January 15, 2020.

Required:

A. Prepare the journal entry to record the sale and issuance of the common stock on January 1, 2019 assuming the common stock has a par value of $10 per share.

B. Prepare the journal entry to record the dividend declaration on December 1, 2019.

C. Prepare the journal entry to record payment of the dividend on January 15, 2020.

Use the following information to answer parts D and E:

The following information is provided for Wildcat Company for the year 2017:

• Preferred stock, 6%, $50 par value, 1,000 shares issued and outstanding
• Common stock, $100 par value, 2,000 shares issued and outstanding
• Dividends in arrears for three prior years (2014-2016)
• Total dividends declared and paid in 2017 were $50,000.

D. How much of the 2017 dividend payment was paid to the preferred stockholders assuming the preferred stock is cumulative?

E. How much of the 2017 dividend payment was paid to the common stockholders assuming the preferred stock is noncumulative?