Darling Corporation Issued 200,000 Shares of $20 Par Value, 5

Essay

Darling Corporation issued 200,000 shares of $20 par value, 5% preferred stock on January 1, 2016, for $4,500,000. In December 2018, Darling declared its first dividend of $800,000.
Instructions
(a) Prepare Darling's journal entry to record the issuance of the preferred stock.
(b) If the preferred stock is not cumulative, how much of the $800,000 would be paid to common stockholders?
(c) If the preferred stock is cumulative, how much of the $800,000 would be paid to common stockholders?