Sleep Corporation Was Organized on January 1, 2017 $$\begin{array} { l l } 2017 & \$ 6,000 \\2018 & \$ 30,000 \\2019 & \$ 60,000\end{array}$$

Essay

Sleep Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends: $$\begin{array} { l l } 2017 & \$ 6,000 \\2018 & \$ 30,000 \\2019 & \$ 60,000\end{array}$$ Instructions
(a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 4% and not cumulative.
(b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative.
(c) Journalize the declaration of the cash dividend at December 31, 2019 using the assumption of part (b).