Wildhorse Corporation issued 106,000 shares of $20 par value, cumulative, 9% preferred stock on January 1, 2021, for $2,570,000. In December 2023, Wildhorse declared its first dividend of $780,000.

Required:

a. Prepare Hodges journal entry to record the issuance of the preferred stock.

b. If the preferred stock is not cumulative, how much of the $780,000 would be paid to common stockholders?

c. If the preferred stock is cumulative, how much of the $780,000 would be paid to common stockholders?