Warren Company has 10,000 shares of 5%, $100 par value noncumulative preferred stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $120,000. This dividend should be distributed to the company's preferred and common shareholders as follows: Major Company is authorized to issue 10,000 shares of common stock and has 7,000 shares outstanding. On September 1, the company declared a $0.25 per share cash dividend. On September 30, the company paid the dividend. The September 30 journal entry to record the dividend payment is as follows