Your answer is correct.

Prepare Monty's journal entry to record the issuance of the preferred stock. $($Credit account titles are automatically indented when

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

$($b$)$

If the preferred stock is not cumulative, how much of the $$840,000$ would be paid to common stockholders?

$($c$)$

If the preferred stock is cumulative, how much of the $$840,000$ would be paid to common stockholders?

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