Brappit Broadcasting Inc. has 15,000 $2.50 preferred shares and 75,000 common shares outstanding. Brappit Broadcasting Inc. declared and paid the following dividends during a three-year period: 2012, $45,000; 2013, $0; and 2014, $130,000.

Required

1. Compute the total dividends on preferred shares and common shares for each of the three years if

a. Preferred shares are noncumulative.

b. Preferred shares are cumulative.

2. For requirement 1b, record the declaration of the 2014 dividends on December 28, 2014, and the payment of the dividends on January 17, 2015. Use separate Dividends Payable accounts for preferred shares and common shares.