When Crossett Corporation was organized in January Year 1, it immediately issued 5,400 shares of $52 par, 6 percent, cumulative preferred stock and 9,000 shares of $11 par common stock. Its earnings history is as follows: Year 1, net loss of $16,400; Year 2, net income of $60,800; Year 3, net income of $114,200. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? Dividend arrearage b. Assume that the board of directors declares a $53,196 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? (Amounts to be deducted should be indicated with minus sign.) Distributed to Shareholders Preferred Common Amount Total dividend declared Year 1 Arrearage Year 2 Preferred dividends Available for common Distributed to common Total distribution Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 1.92,000 shares of $13 par common stock. 2.9,000 shares of $140 par, 6 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 9,000 shares of preferred stock and a $5 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required a. Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. Total dividend b. Prepare general journal entries to record the declaration and payment of the cash dividends. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 > On June 10, Weaver Corporation declared the annual cash dividend on its 9,000 shares of preferred stock and a $5 per share dividend for the common shareholders. Note: Enter debits before credits. General Journal Debit Credit Date June 10 Record entry Clear entry View general journal