Marion Corporation was organized in January 2003. The state authorized 200,000 shares of no-par common stock and 100,000 shares of 10%, $10 par, preferred stock. Record the following transactions that occurred in 2003:

a. Issued 20,000 shares of common stock at $20 per share. Issued 8,000 shares of preferred stock for a piece of land appraised at $90,000.

c. Declared a cash dividend sufficient to meet the current-dividend preference on preferred stock and paid common shareholders $1 per share.

d. How would your answer to

(c) change if the dividend declared were not sufficient to meet the current-dividend preference on preferred stock?